Isidore Security Services Is a National Provider of Guard and Security

question 15

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.Which of the following statements is true?

• 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:

Medium Of Exchange

Anything that facilitates trade by being generally accepted by all parties in payment for goods or services.

Facilitates Trade

Actions or policies designed to make trade between countries or parties easier, typically through reducing barriers such as tariffs and quotas.

Barter

The direct exchange of one product for another without using money.

Medium Of Exchange

Anything that is widely accepted as a means for the payment of goods and services and repayment of debts.