The High Failure Rate Among New Ventures Is Due, in Part

question 62

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 founders 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) the founders of the firms underestimate the complexities involved with starting a new business and the firms lack 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 firms lack 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) the founders of the firms 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:

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Feelings of sadness and dejection, often accompanied by physiological change, such as a decreased functional activity.

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Strategies and methods implemented to avoid or reduce the risk of bodily harm.

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A reflex action of the toes, especially in infants, where the big toe moves upward and the other toes fan out in response to the sole being stroked, indicative of neurological function.