Capital-Constrained Entrepreneurs Cannot Afford to Do Much Prior Analysis and Research

question 55

Multiple Choice

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

• A)the affordability of properly conducted research is beyond the means at their disposal.
• B)the costs of any mistakes are lower than the risks of missing out on opportunistic actions.
• C)the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.
• D)potential competitors could quickly discern the entrepreneurs' intentions and motives from their research.

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Definitions:

Adulterated Food

Food products that have been compromised in quality or safety due to the addition of substances or the removal of vital components.

Consequential Damages

These refer to indirect losses that result from a breach of contract, which were foreseeable and a direct consequence of the breach, such as lost profits or revenue.

Nominal Damages

Damages that are recoverable when a legal right is to be vindicated against an invasion that has produced no actual present loss.

Economic Loss

Financial damage that a person or entity suffers, which may include lost profits, costs of repair or replacement, and loss of use or opportunity.