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:

Controlling Interest

Ownership of a sufficient portion of a firm's stock (typically over 50%) to dictate policies and management decisions.

Financial Performance

An assessment of how well a business generates revenues and manages its expenses, assets, and liabilities.

Corporate Raiders

Investors who buy a large stake in a corporation with the intention of taking over its management and restructuring it for profit.

Executive Privileges

Special rights and privileges that allow presidents and other high-level officials to resist certain subpoenas and other interventions by the legislative and judicial branches of government.