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

question 105

Multiple Choice

An investor is considering in which of two start-up companies she should invest. The investor has faith in the industrial organizational model of above-average returns, and she is using its concepts to make her decision. Both start-up companies propose to manufacture health-focused foods with such characteristics as 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 healthful lifestyles. Which firm will the investor feel is most consistent with the model of industrial organization?

• A) Green Pastures Foods
• B) RexRich Foods
• C) Both firms are consistent with the I/O approach.
• D) At the entrepreneurial stage, the model which companies follow is not important.

---

Definitions:

New Terms

Freshly introduced or revised conditions or stipulations in a contract or agreement.

Standard Order Form

A predefined template used by businesses to facilitate the easy and consistent placing of orders by customers.

Materially Alter

To make significant changes to a document or object that could affect its value, function, or meaning.

Acceptance Of Terms

The agreement to abide by the conditions of an offer or contract.