The What Went Wrong? Feature in Chapter 1 Focuses on Prim

question 21

Multiple Choice

The What Went Wrong? feature in Chapter 1 focuses on Prim, a failed startup in the laundry industry. According to the feature, Prim failed largely as a result of ________.

• A) lack of product/customer focus
• B) poor intellectual property protection
• C) the individuals who started the firm were too young and inexperienced
• D) poor execution intelligence
• E) a lack of passion and resolve

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Definitions:

Differential Effect

The financial impact of choosing one option over another in decision-making scenarios, focusing on differences in costs and benefits.

Variable Selling Cost

Selling costs that vary directly with the volume of sales, such as commissions or shipping fees.

Make-Or-Buy Decision

A decision-making process used by companies to determine whether to produce a product in-house or purchase it from an external supplier.

Cost Savings

The reduction in expenses achieved through efficiencies, economies of scale, negotiations, or eliminating unnecessary expenses.