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.

Comprehend the role of risk and return in financing mergers, including the use of junk bonds.

Understand the concept of value creation through mergers and how it is measured.

Identify defensive strategies used by firms against hostile takeovers.

Understand the historical context and impact of major merger waves.