In order to help ensure success for their new business, which of the f

QUESTION

In order to help ensure success for their new business, which of the following questions is LEAST helpful for Short and Shearer to periodically ask themselves?

A) How well does our firm’s operation align with the business plan?
B) How many employees do we have?
C) How are we handling our finances?
D) How are our employees performing?
E) How much debt can we afford to carry?

ANSWER

Answer: B
Explanation: B) The number of employees in itself is not an indicator of a business’s health. The business could be doing very well with few employees or floundering with many employees (or vice versa). On the contrary, keeping to the business plan, handling finances wisely, ensuring that employees are performing well, and making sure that the amount of debt the business is carrying is appropriate are all very helpful, if not essential, questions that small-business owners should ask themselves periodically.