Which of the Following Statements About Entrepreneurs and Risk Is

question 113

Multiple Choice

Which of the following statements about entrepreneurs and risk is the most accurate?

• A)Entrepreneurs are best characterized as gamblers in their approach to risk.
• B)Entrepreneurs usually avoid taking risks in their ventures.
• C)Successful entrepreneurs never even consider whether their ventures are risky.
• D)Entrepreneurs alternate between pursuing and retreating from risk.
• E)Successful entrepreneurs take very careful, calculated risks.

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Definitions:

Warranty

A promise or guarantee made by a seller to a buyer to repair or replace a product that is found to be defective within a specified period.

Credible Threat

A strategy or warning that is believable and likely to be carried out in a strategic situation.

Stackelberg Firm

A business that is considered a leader in a market, setting prices or quantities that followers in the market then respond to.

Incentive

A motivation or reward offered to encourage specific behaviors or actions, often used in business, economics, and psychology.