In the Context of Risks to New Businesses, Identify a True

Multiple Choice

In the context of risks to new businesses, identify a true statement about risk tolerance.

A) What constitutes a risk is determined by an entrepreneur by observing his or her own tolerances.
B) Risks must be determined by entrepreneurs based on the findings of focus groups with other entrepreneurs in the same industry.
C) In new markets, entrepreneurs must be willing to put up with risks that outweigh their personal risk tolerance.
D) Entrepreneurs can avoid a majority of the risks associated with new start-ups by allowing competitors to invest in their new businesses.