Which of the Following Statements Is Incorrect Regarding the Personal

question 55

Multiple Choice

Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs?

• A) Some people think that entrepreneurs have a "sixth sense" that allows them to see opportunities that others miss.
• B) The extent and depth of an individual's social network affects opportunity recognition.
• C) Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.
• D) Creativity is the process of generating novel or useful ideas.
• E) The corridor principle states that once an entrepreneur starts a firm, he or she begins a journey down a path where "corridors" leading to new venture opportunities become apparent.

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Definitions:

Permanent/Temporary

Describes the nature of employment or accounting entries; permanent implies longevity or continuity, whereas temporary indicates a limited duration or interim status.

Normal Balance

The normal balance is the side (debit or credit) of an account that is expected to have a higher balance based on the accounting equation.

Financial Statement(s)

Reports summarizing the financial performance, position, and cash flows of a business over a specified period, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Defines classifications of accounts in accounting where permanent accounts refer to balance sheet items that carry over into the next fiscal period, while temporary accounts are closed at the end of each accounting period.