Final answer:
Expanding a company's business to a larger customer base can be an example of taking on too much risk and extending capabilities while potentially hurting its reputation.
Step-by-step explanation:
When a company takes on too much risk by expanding its business to a larger customer base, it can be an example of extending its capabilities and hurting its reputation. In this case, the company has only worked with clients in North America, but now it is taking on a project in Poland, which is a new market for them. This expansion carries the risk of not being familiar with the local market and potentially facing challenges related to cultural differences, language barriers, and unfamiliar regulations.