Scenario D. Ashok has begun the planning process for his entrepreneurial venture. He has completed an assessment of his vision to operate a full-service shuttle service for the elderly, for which he feels there is a strong market. He has a good understanding of the availability of his own resources and his personal traits to manage the business. Now he is prepared to start compiling functional plans for marketing, finance and human resources so that he can obtain the financing he will need to start. He is also contemplating how to develop the right reputation and create the proper networks to find employees and customers as well as get advice from fellow businesspeople.
-When Ashok worries about his network and his business's reputation,he is concerned with
A)social capital.
B)legitimacy.
C)horse trading.
D)bootlegging.
E)corporate standing.

Question

Quizplus · Accepted Answer

Ashok's concern with creating the proper networks and finding employees and customers indicates that he is focused on building social capital. Social capital refers to the personal and professional relationships that can be leveraged to benefit a business venture. Building social capital often involves networking and cultivating relationships with key stakeholders such as suppliers, customers, and other business owners.