Explain the difference between errors of omission and commission.
What will be an ideal response?
An error of commission occurs from the decision to pursue this new entry opportunity, only to find out later that the entrepreneur had overestimated his or her ability to create customer demand and/or to protect the technology from imitation by competitors. The costs to the entrepreneur were derived from acting on the perceived opportunity.
An error of omission occurs from the decision not to act on the new entry opportunity, only to find out later that the entrepreneur had underestimated his or her ability to create customer demand and/or to protect the technology from imitation by competitors. In this case, the entrepreneur must live with the knowledge that he let an attractive opportunity slip through his fingers.
You might also like to view...
One reason for authorizing purchases is to enable efficient inventory management
Indicate whether the statement is true or false
Which of the following is a measure of the liquid position of a corporation?
A) earnings per share B) inventory turnover C) current ratio D) number of times interest charges earned
Chapter 13 bankruptcy A)is used by businesses to reorganize their financial situations
B)is an involuntary bankruptcy. C)can be used only by individuals with a regular source of income. D)is used by businesses to liquidate their debts.
The major cost component for communications is the resource
needed to transmit data across distance. Indicate whether the statement is true or false