Without the possibility of business failures, firms would have few incentives to innovate.

Name: Without the possibility of business failures, firms would have few incentives to innovate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The possibility of business failures creates a competitive environment where firms are motivated to innovate to differentiate themselves, improve efficiency, and offer better products or services to survive and thrive. Without this risk, there would be less urgency to innovate.

Without the Possibility of Business Failures, Firms Would Have Few