The What Went Wrong Feature in Chapter 9 Focuses on Monitor110

question 15

Multiple Choice

The What Went Wrong feature in Chapter 9 focuses on Monitor110, a 2005 startup that helped hedge fund managers and professional investors make better investment decisions . According to the feature, Monitor110's failure is an example of how a lack of ________ and ________ can damage a new venture team.

• A) teamwork, a well-qualified board of directors
• B) money, a highly motivated new venture team
• C) industry experience, prior entrepreneurial experience
• D) good legal advice, industry experience
• E) consensus, a clear leader

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Definitions:

Sales

The total amount of goods or services sold by a company within a specific period, generating revenue.

Operating Leverage

A financial ratio that measures the degree to which a firm can increase operating income by increasing revenue, highlighting the fixed versus variable costs structure.

Financial Leverage

The use of borrowed funds to increase the potential return on investment, amplifying both potential gains and losses.

Fixed Cash Outflows

Regular, set payments made by a business, such as rent, salary payments, and loan repayments.