Savanna Combs opened a clothing boutique two years ago. Unfortunately, the boutique failed after 18 months. Savanna attributes the failure of her boutique to the facts that her employees couldn't adjust quickly enough to their new roles and that her boutique lacked a "track record" with outside buyers and sellers, which made it difficult to form partnerships and make sales. Savanna suffered from what research calls the ________.

Question

Quizplus · Accepted Answer

The liability of newness refers to the challenges that new businesses face, such as lack of experience, unproven track record, and difficulty in establishing relationships with suppliers and customers. This fits with Savanna's situation as she faced challenges due to her business being new and lacking a track record, making it difficult to form partnerships and sales. The other options, burden of novelty, millstone of innovation, and burden of newness, are not commonly used terms in business research and do not accurately describe Savanna's situation. Liability of preparedness is also not a commonly used term and does not apply to Savanna's situation.

Savanna Combs Opened a Clothing Boutique Two Years Ago