The High Failure Rate Among New Ventures Is Due in Part

question 34

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 founder's 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) they underestimate the complexities involved with starting a new business and the firm lacks 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 firm lacks 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) they 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:

Multiple Intelligences

A theory proposing that people possess different kinds of intelligences, not just traditional IQ.

Howard Gardner

An American cognitive psychologist known for his theory of multiple intelligences.

Traditional IQ Tests

Standardized assessments designed to measure human intelligence and cognitive abilities based on a fixed set of criteria.

Intellectual Disability

A condition characterized by significant limitations in intellectual functioning and adaptive behavior, appearing before the age of 18.