Which of the following terms refers to the set of risks faced by firms early in their life cycles that come from a lack of knowledge by the owners about the business they are in and by customers about the new business?

Question

Quizplus · Accepted Answer

The term "liability of newness" refers to the risks faced by new firms due to a lack of knowledge by the owners about the business they are in and by customers about the new business. Slack resource refers to unused resources that a firm may have, while walkaway refers to a situation where a party in a negotiation has the option to walk away from the deal. CSF stands for critical success factors, which are key factors that a firm must focus on in order to be successful. None of these terms relate specifically to the risks faced by new firms due to a lack of knowledge.

Which of the Following Terms Refers to the Set of Risks