When the Expression Uncertainty Is Discussed in Chapter 2, a Four-Tiered

question 3

Multiple Choice

When the expression uncertainty is discussed in Chapter 2, a four-tiered matrix is displayed which attempts to define the entrepreneurial playing field and how it typically differs from the managerial playing field in terms of uncertainty (Sarasvathy) . Which characteristics fall into the quadrant in which entrepreneurship typically plays?

• A) high uncertainty, high risk, high opportunity, minimal planning
• B) high uncertainty, high risk, minimal opportunity, minimal planning
• C) high uncertainty, low risk, high opportunity, minimal planning
• D) high uncertainty, medium risk, high opportunity, minimal planning

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Definitions:

Contribution Margins

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.

Labour Hours

The total number of hours worked by employees, used for measuring productivity or calculating costs.

Product Mix

The variety of products that a company offers for sale, which can affect its market position and profitability.

Predatory Pricing

The strategy of setting prices at an extremely low level with the intent to eliminate competition, often considered anti-competitive and illegal under antitrust laws.