Definition Of

Corridor Principle

Corridor principle is which states that once an entrepreneur starts a firm and becomes immersed in an industry, “corridors” leading to new venture opportunities become more apparent to the entrepreneur than to someone looking in from the outside.

Share it:

More from this Section

  • Fiduciary obligation
    Fiduciary obligation means the obligation to always act in another’s (franchisor and franchisee) best interest; it is a mistake to assume that a franchisor...
  • Prototype
    Prototype is the first physical depiction of a new product, will be produced. For a new product, a prototype is needed to test the merits of the product and get substantive feedback.
  • Profit Margin
    Profit margin is a measure of a firm’s return on sales that is computed by dividing net income by net sales. A firm’s profit margin tells it what percentage...
  • Patent
    A patent is a grant from the government conferring the rights to exclude others from making, selling, or using an invention for the term of the patent.
  • Entrepreneurial & Managerial services
    Entrepreneurial services refer to those services that generate new market, product, and service ideas. Managerial services are the routine functions of the firm...
  • Founders' Agreement
    A founders’ agreement also called shareholders’ agreement is a written document that deals with issues such as the relative split of the equity among the founders for the firm...
  • Collective marks
    Collective marks are trademarks or service marks used by the members of a cooperative, association, or other collective group, including marks indicating membership...