Scenario C

question 70

Multiple Choice

Scenario C. Four entrepreneurs are discussing the potential for success or failure of their ventures. A few of them realize that they did not understand the risk involved in their undertaking. They describe their start-ups in the following manner:
1. Raymond: "I had very little money invested but I was the first on the market with my product."
2. Lotina: "My firm had a very substantial amount of money invested in my venture because I had a completely new and unique product that was expensive to create."
3. Sharida: "I had almost nothing invested in my business which produced a product with many similar competitors already on the market."
4. Kevin: "I have spent an incredible amount of money getting my business going in an industry with many well-established competitors."

-According to the Entrepreneurial Strategy Matrix,Sharida's scenario can be described as:

• A)low innovation/high risk.
• B)low innovation/low risk.
• C)high innovation/low risk.
• D)high innovation/high risk.
• E)there was no risk in this scenario.

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Definitions:

Business

A commercial organization or enterprise that engages in professional, commercial, or industrial activities.

Building Consultant

A professional who advises on the construction, modification, or repair of buildings, ensuring compliance with legal and regulatory requirements and achieving desired functionality and aesthetics.

Ledger

A book or collection of financial accounts where transactions are summarized and classified.

Transactions

Actions or activities conducted by a company or between parties that affect the financial position, such as sales, purchases, and payments.