Which of the Following Statements Is Incorrect Regarding the Personal

question 55

Multiple Choice

Which of the following statements is incorrect regarding the personal characteristics of entrepreneurs?

• A) Some people think that entrepreneurs have a "sixth sense" that allows them to see opportunities that others miss.
• B) The extent and depth of an individual's social network affects opportunity recognition.
• C) Several studies show that prior experience in an industry actually blinds an entrepreneur to the recognition of new opportunities in the same industry.
• D) Creativity is the process of generating novel or useful ideas.
• E) The corridor principle states that once an entrepreneur starts a firm, he or she begins a journey down a path where "corridors" leading to new venture opportunities become apparent.

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Definitions:

Return on Assets

A financial metric that measures the profitability of a company relative to its total assets, indicating how effectively a company uses its assets to generate profit.

Research Findings

Outcomes or conclusions derived from systematic investigation into a study area to establish facts or reach new conclusions.

GAAP Conservatism

An accounting principle that entails erring on the side of caution, providing for potential losses or liabilities.

R&D

Research and Development; activities undertaken by a business to innovate and introduce new products or services.