An entrepreneur starts a business but he doesn't know whether other companies producing a similar product will capture the market to the extent that there is very little left for his business. This is known as
A) technical uncertainty.
B) competitive uncertainty.
C) tacit knowledge.
D) licensing uncertainty.
E) franchising uncertainty.

Question

Quizplus · Accepted Answer

Competitive uncertainty refers to uncertainty about the actions of competitors and whether they will capture a significant portion of the market. Technical uncertainty refers to uncertainty about the feasibility of developing a new technology, tacit knowledge refers to knowledge that is difficult to articulate, licensing uncertainty refers to uncertainty about whether a license will be granted, and franchising uncertainty refers to uncertainty about the success of a franchised business model.

An Entrepreneur Starts a Business but He Doesn't Know Whether