Which of the Following Factors Is a Disadvantage of Being

question 30

Multiple Choice

Which of the following factors is a disadvantage of being a first mover?

• A)First movers have to bear pioneering costs.
• B)First movers are prone to make mistakes.
• C)First movers run the risk of building the wrong resources and capabilities.
• D)First movers may invest in inferior or obsolete technology.
• E)All of these choices.

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Definitions:

Interest Rate Movements

The fluctuations in interest rates which can affect the cost of borrowing money and the performance of investments.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan amount.

Supply and Demand

Economic model describing how prices vary as a result of a balance between product availability and the desire of consumers.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, regulating banks, and providing financial services to the government.