Final answer:
Personal risk taking in business organizations refers to executives risking their own capital to help launch a new product. When the founders of a startup firm invest their own money into the firm, they demonstrate a belief in its prospects. The correct answer is d. refers to executives risking their own capital to help launch the new product.
Step-by-step explanation:
Personal risk taking in business organizations refers to executives risking their own capital to help launch a new product.
When the founders of a startup firm invest their own money into the firm, they demonstrate a belief in its prospects. This personal risk-taking shows commitment and confidence in the new product's success.
For example, an executive might invest a significant amount of their own money into a new tech startup, knowing that there is a risk of failure. However, they believe in the product's potential and are willing to take that risk in order to bring it to market.
Personal risk taking in business organizations is not associated with the risk that executives assume in favoring a strategic course of action or requiring investors to personally guarantee the capital if the product fails. It also does not involve venturing into the unknown without knowing the probability of success.