Question

What motivated Lawrence to accept the risk of acquiring and organizing resources to start a hot sauce business?

Answer 1

Answer:

Lawrence's motivation to accept the risk of acquiring and organizing resources to start a hot sauce business is because:

"He believed that the efficiency of his hot sauce manufacturing process would allow his business to make a profit."

Explanation:

Efficiency in production reduces production costs.  When a product can be produced at a cost that is lower than the competitors', the firm gains much competitive advantage.  This can singularly help the firm to increase its sales volume, make profits, and remain in business even when competitors are liquidating theirs.  Essentially, it was Lawrence's research, which uncovered an opportunity of limiting production costs to a minimal level, that motivated him to enter into the hot sauce manufacturing business.

Answer 2

Answer:B

Explanation: