Question

In: Accounting

One important decision that the incumbent, Blockbuster, confronted early on was, “Do we cut our _________?”...

One important decision that the incumbent, Blockbuster, confronted early on was, “Do we cut our _________?”

  • hit releases
  • rentals
  • late fees
  • a and b

Solutions

Expert Solution

Answer is both

Access to debt or equity financing may vary from incubators having their own seed fund or revolving loan fund for tenants to draw. It leads with by reducing the rentals and late fees for to increase the profitability and growth of the business

Business Incubation is the name given to the process, wherein an individual or an organization supports the establishment and growth of a start-up. Those supporting the start-up or new companies are called business incubators. These business incubators see the growth potential and weigh the opportunity before supporting or funneling funds into any start-up. The selection of a start-up involves a high level of research before any decision is taken to support or fund a start-up. In a nutshell, we can say the goal of incubation is to increase the success chances of business.

The number of incubators has grown considerably in recent years. This rise is due to several factors, such as corporate downsizing, increased entrepreneurship, new technologies, economic globalization, and the transfer of technology.


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