Intro to Business Multiple Choice – Flashcards
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What is the primary reason that so many new business fail?
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Mismanagement resulting from lack of business know how
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Businesses such as flower shops, restaurants, bed and breakfasts, and automobile repair are good candidates for entrepreneurs because they
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Have a relatively low initial investment
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An individuals desire to create a new business is referred to as
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the entrepreneurial spirit
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What is a common mistake that small business owners make when their businesses begin growing?
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they over expand without proper planning
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The fact that insulin and power steering both originated with individual inventors and small companies is testimony to the power of small businesses as providers of
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technical innovation
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In her retail shop, Jocelyn knows most of her best customers by name and knows their preferences in clothing and shoes. This demonstrates which advantage of a small business?
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Personal relationships with customers
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Shonta started a graphic design firm a ago. The business has done well, but it needs a lot more equipment computers and employees to continue expanding. Shonta thinks she can get all the money she will need from her bank. What advice might you give to her?
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She should consider alternative sources of financing because banks provide only about one fourth of the goal capital to small businesses
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Volunteers for SCORE are
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retired businesspeople from different industries
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An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stories is
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franchisor
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Manju Lyer asks for your advice in opening a new business. She plants to provide tax related services to individuals and small business owners in her community. Of course she wants an attractive means of starting and operating her business with a reasonable hope of succeeding in it. What will be your advice?
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Consider purchasing a franchise
