In the context of risks to new businesses, identify a true statement about risk tolerance.

Multiple Choice

Risks must be determined by entrepreneurs based on the findings of focus groups with other entrepreneurs in the same industry.

Entrepreneurs can avoid a majority of the risks associated with new start$-$ups by allowing competitors to invest in their new businesses.

In new markets, entrepreneurs must be willing to put up with risks that outweigh their personal risk tolerance.

What constitutes a risk is determined by an entrepreneur by observing their own tolerances.