Question

Factors leading to the slow growth of demand in embryonic industries include all of the following except the

A) poor quality of the first products.
B) lack of complementary products.
C) lack of venture capital for innovative products.
D) high production costs of the products.
E) lack of distribution channels for the products.

Answer 1

C) lack of venture capital for innovative products.

Step-by-step explanation:

Embryonic industries are such industries that are at the beginning stage in their life-cycle. More specifically, newly established ventures are called the embryonic industry or firm.

Options A, B, D, and E all are wrong because a new firm may not produce high qualified first products. It may not have the right complementary products, the production cost may be higher than expected, and finally, there are a few distribution points. Those lead to the slow growth of the embryonic industry.

Option C is the answer because venture capitalists like to invest in innovative products, so there should not be a lack of capital.