Important Issues in New Venture Creation Include All the Following

question 97

Multiple Choice

Important issues in new venture creation include all the following except

• A) does the entrepreneur have good ideas and the courage to give them a chance?
• B) is the entrepreneur prepared to meet and master the test of strategy and competitive advantage?
• C) can the entrepreneur identify a market niche that is being missed by other established firms?
• D) can the entrepreneur identify a new market that has not yet been discovered by existing firms?
• E) can the entrepreneur find appropriate safety nets to protect the business from marketplace challenges?

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Definitions:

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the nominal value of a share.

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Tender Offer

An offer made directly to shareholders, proposing to purchase their shares at a specified price above market value.

Share Repurchase Program

A plan initiated by a company to buy back its own shares from the marketplace, often to reduce the supply of shares available and thus increase the value of remaining shares.