The What Went Wrong? Feature in Chapter 13 Focuses on Meetro

question 42

Multiple Choice

The What Went Wrong? feature in Chapter 13 focuses on Meetro, a location-aware instant messaging platform, that was launched on June 1, 2005, but eventually failed. The main lesson conveyed by the feature is that:

• A) businesses don't always scale
• B) it's difficult to achieve market leadership
• C) businesses that don't "plan" for growth are at a significant disadvantage
• D) a business can grow too fast
• E) it's difficult to capture economies of scale

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Definitions:

Monetary Policy

Actions by a central bank or other regulatory authority to influence a nation's money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

Fiscal Policy

Government policies related to taxation and public spending with the aim of influencing economic conditions, including growth, inflation, and unemployment rates.

Legislation

Laws and statutes that are enacted by a legislative body through its legislative process.

Marginal Propensity

The portion of additional income that an individual spends on consuming goods and services, as opposed to saving.