The What Went Wrong Feature in Chapter 13 Focuses on Wesabe

question 7

Multiple Choice

The What Went Wrong feature in Chapter 13 focuses on Wesabe, a Web-based company that was launched in 2006 to help people manage their personal finances. According to Marc Hedlund, one of Wesabe's cofounders, the company failed for two primary reasons. First, it misunderstood its users. Second:

• A) it didn't allow a partner to provide it with an essential service that it decided to build on its own
• B) it didn't achieve a large enough critical mass of users
• C) it didn't implement a revenue model fast enough
• D) it didn't utilize both internal and external growth strategies
• E) it didn't hire an experienced CEO

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Definitions:

Human-Capital Theory

A concept in economics that views individuals' skills, knowledge, and experience as economic value, suggesting that investments in education and training can enhance productivity and earnings.

Discriminatory Practices

Actions or policies that treat an individual or group unfairly based on certain characteristics, such as race, gender, age, or sexual orientation.

Labor Markets

Marketplaces where employers find workers and workers find jobs, defined by the supply and demand for labor.

Compensating Wage Differentials

Differences in wage rates due to the non-monetary aspects of different jobs, such as riskiness or social value.