Scenario 2-2. Harry Homer and Jenny Juno are two people extremely interested in establishing a small business. Harry is interested in marketing his newly developed product, which increases the speed by which data are transferred through phone lines. He sees great potential for his new product and is willing to devote his life savings and begin this new venture. Jenny is also interested in this product. She too sees a great potential down the road as businesses adapt this new technology. In the future, she can see a major company growing quickly with the ability to go public or merge with a major phone company.
-In Scenario 2-2, what will be the most challenging aspect of beginning this new business?

Question

Quizplus · Accepted Answer

Income uncertainty is often the most challenging aspect of starting a new business, especially when introducing a new product to the market. Harry and Jenny are investing their savings and betting on future success, which inherently comes with financial risks and uncertainties.