Two Fatal Flaws Can Render a Business Model Untenable from the Beginning

question 66

True/False

Two fatal flaws can render a business model untenable from the beginning: a complete misread of the customer and utterly unsound economics.

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unfavorable outcome or stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Punishment

A consequence applied to decrease or eliminate a behavior or action considered undesirable.

Acquisition

The process of gaining possession or control of another company or business entity.

Extinction

Extinction in behavioral science refers to the gradual reduction and eventual disappearance of a conditioned response when the reinforcement is no longer presented.