Which of the following is a liability of newness?
A)Costs associated with learning new tasks are high.
B)Lack of established routines and processes give the venture a new slate.
C)Communication in informal systems is increased.
D)Market for potential consumers is limiteD.

Question

Quizplus · Accepted Answer

Costs associated with learning new tasks are high is a liability of newness because new ventures have to spend time and resources on training employees and developing new ways of doing things. This can result in higher costs and a longer learning curve, which can limit the ability of the venture to compete with established competitors. The other choices are not liabilities of newness. Lack of established routines and processes can be positive in that the venture has a fresh start without the constraints of existing organizational practices. Communication in informal systems can be beneficial for creativity and innovation, while a limited market for potential consumers is a challenge faced by all businesses, not just new ventures.

Which of the Following Is a Liability of Newness