The High Failure Rate Among New Ventures Is Due, in Part

question 62

Multiple Choice

The high failure rate among new ventures is due, in part, to the liability of newness, which refers to the fact that new companies often falter because ________.

• A) they are underfunded and the founders of the firms don't move quickly enough to put together boards of directors and boards of advisors that can provide them direction and advice
• B) the founders of the firms underestimate the complexities involved with starting a new business and the firms lack a "track record" with outside buyers and sellers
• C) the people who start the firms can't adjust quickly enough to their new roles and the firms lack a "track record" with outside buyers and sellers
• D) the people who start the firms can't adjust quickly enough to their new roles and they are underfunded
• E) the founders of the firms underestimate the complexities involved with starting a new business and they don't move quickly enough to establish business partnerships

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Definitions:

Leap Year

A year with 366 days, with an extra day added to February to keep the calendar year synchronized with the astronomical or season year; occurs every four years.

Special Promotion

A marketing campaign offering unique deals or discounts to boost sales or consumer interest.

Wholesaler

A person or entity that buys goods in large quantities from manufacturers or importers and sells them to retailers or other businesses.

Mark-Up

The percentage or fixed amount added to the cost of goods to determine the selling price.