QUESTION Like many new business owners, Nattaya is having difficulty with cash flow in her Thai restaurant. She just learned she needs a new stove hood to comply with health codes, but the cost is prohibitive. What option can she pursue to get a new hood without spending cash? What will be an ideal response? […]
Date: September 3rd, 2020
QUESTION Why does paperwork often present a problem to small businesses? What will be an ideal response? ANSWER Answer: They often have a lack of specialists to deal with it. Explanation: Small-business owners can be easily overwhelmed with filing the necessary government paperwork for their business as well as attending to the other needs […]
Date: September 3rd, 2020
QUESTION There are many reasons why small businesses fail. What reason is a direct reflection of the business owner’s capabilities? What will be an ideal response? ANSWER Answer: An entrepreneur’s inadequate management skills are a key reason for the failure of small businesses. Explanation: Running a small business requires an entrepreneur to wear many […]
Date: September 3rd, 2020
QUESTION What are three important actions an entrepreneur should take to keep a small business healthy? What will be an ideal response? ANSWER Answer: An entrepreneur should keep accurate financial records, stay in touch with customers, and effectively manage employees. Explanation: To run a successful small business, an entrepreneur should keep accurate financial records, […]
Date: September 3rd, 2020
QUESTION Many small businesses fail because they are selling products or services that are new and untried. This sounds like the definition of innovation. Yet, why does this often lead to failure of an enterprise? What will be an ideal response? ANSWER Answer: By selling products and services that are new and untried, the […]
Date: September 3rd, 2020
QUESTION Which of the following best explains why flexibility is an important quality that Christina needs for success? A) It takes a certain amount of money to start a business. B) It often helps to have a business partner in a new business. C) Starting a new business requires a great deal of planning. D) […]
Date: September 3rd, 2020
QUESTION Answers to which of the following questions are LEAST relevant to determining whether Christina has located a good opportunity in starting Redenda Pizza? A) Are there other pizza restaurants in the immediate vicinity of the planned locations? B) Is the business of other pizza restaurants in the city growing? C) Do the planned locations […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, strengthens the case that Christina has a good opportunity in opening a new pizza restaurant? A) There are many existing pizza restaurants in Christina’s city. B) The pizza business in Christina’s city has remained largely unchanged for many years. C) Restaurant consumers in Christina’s city mostly frequent Mexican […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, does NOT strengthen the case that Christina has personal characteristics necessary for her new business to succeed? A) She is willing to take risks. B) She is motivated. C) She works well with others. D) She is a “big picture” thinker. E) She follows directions carefully. ANSWER […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, weakens Huan’s argument? A) No other companies produce the same flavors as Lola’s Soft Drinks. B) Sales of Lola’s Soft Drinks have been steadily increasing for the last three years. C) The company owners work well together and still get along nicely. D) The bottling facility currently used […]
Date: September 3rd, 2020
