An Investor Is Considering in Which of Two Start-Up Companies

question 52

Multiple Choice

An investor is considering in which of two start-up companies to invest.The investor has faith in the industrial organization (I/O) model of above-average returns and is using that as a guideline to make a decision.Both start-up companies propose to manufacture health-focused foods with low salt, low sugar, high fiber, and no artificial additives.RexRich Foods has a business strategy of producing a differentiated product for which consumers will pay more.Green Pastures Foods is in the health-foods industry because of its internal culture and commitment to healthy lifestyles, but it does not have any executives with experience in food production.Which investment decision is the investor most likely to make?

• A) The investor will select Green Pastures Foods since it is most consistent with the I/O model.
• B) The investor will select RexRich Foods since it is most consistent with the I/O model.
• C) Since both firms are consistent with the I/O model, the investor will seek additional information before making a decision.
• D) At the entrepreneurial stage, the model that companies follow is not important, and the investor will wait before making any investments.

Grasp the influence of cultural and societal changes on advertising strategies.

Understand factors contributing to political behavior in the workplace.

Recognize how power is acquired and exercised within organizations.

Identify the consequences of power dynamics and political behavior in organizational settings.

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Definitions:

Prenatal

Relating to the period or development before birth; during pregnancy.

Urethral Meatus

The external opening of the urethra, through which urine exits the body in both males and females, and also serves as a passage for semen in males.

Hypospadias

A congenital condition in males where the urethra opens on the underside of the penis rather than at the tip.

Phimosis

A condition where the foreskin of the penis cannot be fully retracted over the glans, often requiring medical attention in severe cases.