43.5k views
0 votes
Start-ups sometimes lack legitimacy, but this intangible

resource can be transferred through association with alliance
partners, sponsors, or customers.
a.True
b.False

1 Answer

5 votes

Final answer:

Legitimacy, as an intangible resource, can be transferred to start-ups through association with alliance partners, sponsors, or customers. This helps to establish credibility and increase the chances of success.

Step-by-step explanation:

The statement is true. Legitimacy, as an intangible resource, can be transferred to start-ups through association with alliance partners, sponsors, or customers. When start-ups establish collaborations with reputable and well-established organizations or individuals, they gain credibility and legitimacy by association.

For example, if a start-up partners with a well-known brand or secures sponsorship from a reputable organization, potential investors, customers, and other stakeholders may view the start-up as more trustworthy and credible. This association helps to mitigate the initial lack of legitimacy that many start-ups face.

By leveraging the reputation and resources of alliance partners, sponsors, or customers, start-ups can enhance their credibility and increase their chances of success.

User Vladimir Muzhilov
by
8.2k points