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.
