Why Is Relying Only on Financial Performance a Poor Measure

question 4

Multiple Choice

Why is relying only on financial performance a poor measure of venture success?

• A)Values are very sensitive to the timing of assessment
• B)Corporate ventures do not need to make a profit
• C)Strategic factors are more important
• D)Growth is more important than profitability

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, used to estimate the true parameter of a population with a specified level of confidence.

Null Hypothesis

A statement in statistical hypothesis testing that proposes no significant difference or effect, assumed true until evidence suggests otherwise.

Two-Tail Test

A statistical test where the critical area of a distribution is two-sided and tests whether a sample is either greater than or less than a certain range of values.

Two-Tail Test

A statistical test where the critical area of a distribution is two-sided and tests whether a sample is either greater than or less than a range of values.