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

---

Definitions:

Practicum

A supervised employment experience in a qualified health care facility as part of the educational curriculum; also known as an externship.

Private Employment Agency

An organization that matches employers to employees, typically operating in the private sector and charging a fee for its services.

First Year's Wages

The amount of money earned by an individual in the first year of employment.

Cover Letter

A document sent with a resume to provide additional information on one's skills and experience, typically tailored to a specific job application.