The Main Challenges for a Business in the Introduction Stage

question 52

Multiple Choice

The main challenges for a business in the introduction stage of the organizational life cycle is ________.

• A) beginning the process of transitioning the owner from a hands-on supervisor to a more managerial role and developing business partnerships
• B) developing business partnerships and making sure the initial product or service is right
• C) determining whether the owner of the business and the current management team is capable of taking the business further and developing systems and procedures
• D) developing systems and procedures and beginning the process of transitioning the owner from a hands-on supervisor to a more managerial role
• E) making sure the initial product or service is right and starting to lay the groundwork for building a larger organization

---

Definitions:

Fiscal Year

A 12-month period that companies use for accounting purposes and preparing financial reports, which may or may not align with the calendar year.

Quick Ratio

A liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

Assets

Resources owned or controlled by a business or individual, which are expected to produce future economic benefits.

Liabilities

Financial obligations or debts owed by a business or individual to others, which must be paid in the future.