Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because
A)the affordability of properly conducted research is beyond the means at their disposal.
B)the costs of any mistakes are lower than the risks of missing out on opportunistic actions.
C)the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.
D)potential competitors could quickly discern the entrepreneurs' intentions and motives from their research.

Question

Quizplus · Accepted Answer

Capital-constrained entrepreneurs may have limited resources to invest in research and analysis. However, conducting thorough research can significantly reduce risks and uncertainties associated with the opportunity being pursued. While the affordability of research may be an issue, it is important to weigh the potential benefits against the costs. In some cases, the limited profit potential and high uncertainty of the opportunity may not justify the costs of research and analysis. Therefore, option C is the best choice. Options A and D are not relevant to the situation, and option B is not an appropriate strategy for success in entrepreneurship.

Capital-Constrained Entrepreneurs Cannot Afford to Do Much Prior Analysis and Research