Question

Savanna Combs opened a clothing boutique two years ago. Unfortunately, the boutique failed after 18 months. Savanna attributes the failure of her boutique to the facts that her employees couldn't adjust quickly enough to their new roles and that her boutique lacked a "track record" with outside buyers and sellers, which made it difficult to form partnerships and make sales. Savanna suffered from what research calls the ________.

Answer 1

Liability of Newness

Step-by-step explanation:

Liability of newness can be defined as the way in which business owners or companies failed due to the fact that the owners where not able to adjust quickly to new roles. Liability of newness can also happen if the firm failed to track their record with both the outside buyers and suppliers and they are more likely to face challenges and higher mortality rate than those business that has already been established or older organisation because they are younger.

Therefore Savanna suffered from what research calls the LIABILITY OF NEWNESS

Answer 2

C. Liability of newness

Step-by-step explanation:

Liability of newness is the situation whereby organizations often fails or lose momentum as a result of individuals who started the organization aren't quick enough to adjust to their new roles quickly enough or/and also because the organization lacks a track records with outside suppliers of input and buyers of output. Liability of newness describes different risks of an organisation faltering during its lifetime course.

It points to the idea that new companies have a higher mortality rate than older companies. It is the threat of early failure.