Isidore Security Services Is a National Provider of Guard and Security

question 76

Multiple Choice

Isidore Security Services is a national provider of guard and security services for businesses. It has been in business for over 90 years,having been founded by one of Teddy Roosevelt's Rough Riders (Isidore O'Malley) . Lately it has been losing clients to more aggressive and innovative firms offering remote security monitoring systems instead of a guard-based approach. The board of directors of Isidore Security Services is concerned that this downward trend may threaten the existence of this venerable firm and the jobs of its employees.

• A)This is an example of an established firm neglecting the opportunity-seeking aspect of strategic entrepreneurship.
• B)This example shows the dysfunctional aspects of unrestricted entrepreneurialism.
• C)This is an example of the lack of human capital hampering internal innovation.
• D)Isidore Security Services is suffering from the "novelty effect" wherein new firms are more attractive to clients/customers merely because they are new and not because they add value.

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Definitions:

Noncash Assets

Assets owned by a business that are not in the form of cash but can be converted into cash within a year, including inventory, real estate, and investments.

Safe Cash Payments

Transactions made in cash that are secure and minimize the risk of theft or loss.

Liquidation Expenses

Costs associated with winding up a company's operations, selling off assets, and paying off creditors in the event of liquidation or bankruptcy.

Profits and Losses

The financial results of a company's operations, indicating the net money made or lost within a specific period.