Selected Answer: corporation Correct Answer: corporation • Question 32 2 out of 2 points North Farm Society is an association of farmers from rural communities. Its agenda is not to make profits but to help its members market their produce and purchase large quantities of
fertilizer, seeds, and other supplies at discounted prices. Thus, North Farm Society is an example of a(n) _____. Selected Answer: cooperative Correct Answer: cooperative • Question 33 2 out of 2 points Big Lite Inc. purchases Canton Bulbs, its direct competitor, by buying most of its stock. In this scenario, Big Lite Inc. is involved in a(n) _____. Selected Answer: acquisition Correct Answer: acquisition • Question 34 1 out of 1 points Which of the following explains an organization's reason for existence? Selected Answer: The organization's mission statement Correct Answer: The organization's mission statement • Question 35 2 out of 2 points Which of the following statements is true of a business plan? Selected Answer: It should establish a strategy for acquiring sufficient funds to keep a business going
Correct Answer: It should establish a strategy for acquiring sufficient funds to keep a business going • Question 36 2 out of 2 points Which of the following is an advantage for small businesses that choose to enter the retailing industry? Selected Answer: Retailing allows small business to focus on specific groups of consumers. Correct Answer: Retailing allows small business to focus on specific groups of consumers. • Question 37 2 out of 2 points 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? Selected Answer: undercapitalization Correct Answer: undercapitalization Response Feedback: The scenario best illustrates undercapitalization. The shortest path to failure in business is undercapitalization, which is the lack of funds to operate a business normally. Too many entrepreneurs think that all they need is enough money to get started, that the business can survive on cash generated from sales soon thereafter. But almost all businesses suffer from seasonal variations in sales, which make cash tight, and few businesses make money from the start. • Question 38 2 out of 2 points . Crisis management plans generally cover maintaining business operations during a crisis and:
Selected Answer: communicating with others about the situation and the company's response to the crisis. Correct Answer: communicating with others about the situation and the company's response to the crisis.
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