unit 1 challenge 2: options and challenges of businesses

If an owner makes effective use of people and funds, a business may succeed because of __________.

management of resources

Through correct analysis of demand, a business may succeed due to __________.

planning and organization

If a business does not audit its decisions, it might fail due to __________.

uncontrolled resources

Why are small businesses important?

Over 50% of sales go to small businesses.

What is the main difference between a small business owner and an entrepreneur?

Entrepreneurs take on businesses with the goal of growth and expansion.

Which of the following makes corporations unique from other types of businesses?

A corporation is legally considered a person.

Which of the following is an advantage to starting a franchise?

A franchisee can utilize proven methods for doing business.

Which of the following statements best supports the decision to form a partnership rather than a sole proprietorship?

A partner would contribute specific skills to make the business successful.

Which of the following statements confirms that Global Hotel Group (GHG) is a corporation rather than another type of business?

GHG can be sued by a disgruntled former employee.

Which of the following is an example of goals and objectives?

Includes the specific milestones or outcomes that Tarheel Coffee hopes to achieve as a business

Which of the following statements is characteristic of a corporation?

It lends money to other groups and organizations.

Select the best reason below why Oliver should form a partnership with Kyle instead of starting a business as a sole proprietor.

Kyle may have experience managing business operations.

Select the statement below that supports Luis starting a business as a partnership with Derick.

Luis needs someone to work with him that has business skills.

Which of the following is an example of a sales forecast?

Market research shows that six similar coffee shops in the surrounding areas profited an average of $150,000 during year one. Tarheel Coffee expects to earn a profit of $170,000 during the first year of business.

Which of the following is an example of a financial plan?

Tarheel Coffee needs an investment of $125,000 to open and is estimated to break even within the first eight months of opening.

Which of the following is an advantage to starting a franchise?

The customer base is already established.

Which of the following is an advantage to starting a new business rather than a franchise?

The owner may have fewer start-up fees to pay.

Which of the following is a trait of small businesses?

They are independently owned.