The High Failure Rate Among New Ventures Is Due, in Part

question 62

Multiple Choice

The high failure rate among new ventures is due, in part, to the liability of newness, which refers to the fact that new companies often falter because ________.

• A) they are underfunded and the founders of the firms don't move quickly enough to put together boards of directors and boards of advisors that can provide them direction and advice
• B) the founders of the firms underestimate the complexities involved with starting a new business and the firms lack a "track record" with outside buyers and sellers
• C) the people who start the firms can't adjust quickly enough to their new roles and the firms lack a "track record" with outside buyers and sellers
• D) the people who start the firms can't adjust quickly enough to their new roles and they are underfunded
• E) the founders of the firms underestimate the complexities involved with starting a new business and they don't move quickly enough to establish business partnerships

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Definitions:

Supervising

The act of overseeing and directing the work and performance of others, ensuring tasks are completed efficiently and effectively.

Stock Market

A public market for the trading of company stock and derivatives at an agreed price.

Stock Exchange

A physical place in which stocks are traded by brokers on behalf of their investor clients.

Securities

Financial instruments that represent some form of financial value such as stocks, bonds, or options, which can be bought and sold.