Megha is a taekwondo expert who starts her own martial arts training academy. She conducts taekwondo classes for women and teaches them the art of self-defense. Megha can be regarded as a(n): entrepreneur Walter sold a piece of land he inherited from his grandparents and started a business with the proceeds. Which of the following sources has Walter used to raise funds for his business? Equity financing Gerald started a business using the savings from his previous job. He planned to run his business on the revenue generated from sales. However, a few months later, he found it difficult to pay his staff, rent, and other expenses. Seasonal sales and inability to secure sufficient credit from local banks made it difficult for Gerald to operate the business normally. Which of the following causes of small-business failure does this scenario best illustrate? Undercapitalization If a small business has to cope with growth, it requires the owner to: give up a certain amount of direct authority. Nathan started the first outlet of Dynamix Gym in New York City in 1995. The business expanded over time, and he became the owner of a chain of gyms in New York State. Though the business had potential to expand outside New York, Nathan did not want to take the risk or responsibility. Hence, he decided to sell the license to own and operate gyms under the brand name Dynamix Gym to independent owners. In return, he charged them an initial fee and a small share in the monthly profits. In this scenario, Nathan is a(n) _____. Franchiser
Carol has decided to open a Vietnamese restaurant in her neighborhood. She will be solely responsible for the management of the restaurant. Which of the following problems is she likely to face while running the business? She may find it difficult to deal with the stress of rent increase. A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is known as a(n) _____. business plan Red Carpet Inc. is a small apparel store started by an aspiring designer. The store needs to compete against larger, well-established multinational brands. Which of the following strategies will most help Red Carpet Inc. avoid competition from larger firms? Red Carpet Inc. should focus on and target small market niches or product needs. Small businesses usually have only one layer of management. Which of the following is an implication of this fact? Small businesses have great flexibility to adapt to changing market conditions. Which of the following is a drawback of obtaining money from venture capitalists to start a small business?
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- Spring '14
- Business, Venture Capital, Small business Administration