In Exploring the Context of a Potential Venture,the Entrepreneur Generally

question 35

Multiple Choice

In exploring the context of a potential venture,the entrepreneur generally does three things: ________.

• A)explores financing options,gathers information,and uncovers business ideas
• B)researches the venture's feasibility,scouts locations,and gathers information
• C)gathers information,identifies potential opportunities,and pinpoints possible competitive advantages
• D)uncovers business ideas,analyzes competitors,and examines financing options

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Definitions:

Expected Loss

The anticipated amount of loss a business might suffer due to various risk factors.

Risk Aversion

A preference for certainty over uncertainty, where an individual prefers outcomes with lower risk and potentially lower returns.

Expected Winnings

The average amount one can expect to win or lose from a gamble or game, calculated by multiplying each possible outcome by its probability and summing the results.

Hyperbolic Discounting

A cognitive bias where people tend to prefer smaller, immediate rewards over larger, delayed rewards, affecting decision-making.