trade credits. Question 20 1 out of 1 points Which of the following reasons makes retailing an attractive industry for small businesses? Selected Answer: Retailing requires low initial financing. Answers: Retailing eliminates the need to engage in active interactions with the final customers. Retailing eliminates the need for any entrepreneurial skills. Retailing offers high barriers to entry. Retailing requires low initial financing. Retailing limits a firm's need to focus on specific groups of consumers. Question 21 1 out of 1 points Catalina opens a fashion boutique with the money she inherited from her parents. She is successful in creating a strong brand image and a loyal customer base. In order to meet the increasing demands of her business, she hires a store manager. However, she finds it hard to let the manager take important decisions about the store. She often finds herself disagreeing with the manager's decisions and in the process loses a lot of existing customers. Which of the following causes of small-business failure does this scenario best illustrate? Selected Answer: Inability to cope with growth Answers: Diseconomies of scale Inability to cope with growth Undercapitalization Debt financing
Debt factoring Question 22 1 out of 1 points Which of the following is considered as one of the major causes of small-business failure? Selected Answer: Lack of funds to operate the business Answers: Lack of funds to operate the business Inability to take quick decisions Inability to focus on narrow niches Lack of flexibility to adapt to changing market demands High initial financing involved Question 23 0 out of 1 points Chang is an interior designer who starts his own consulting firm. His friend Rachel is the owner of a coffee shop. Chang decorates Rachel's new coffee shop in exchange for a supply of coffee whenever his clients visit his office. Which of the following sources of funding does this scenario best illustrate? Selected Answer: Trade credit Answers: Bartering Equity financing Trade credit Mortgaging Line of credit Question 24 1 out of 1 points Entrepreneurship is the process of creating and managing a business to achieve desired objectives. Selected Answer: Tru e Answers: Tru e
False Question 25 1 out of 1 points Many small rural operations cannot obtain financing within their own communities because: Selected Answer: small rural banks lack the necessary financial expertise to counter the risks involved with small-business loans. Answers: rural communities have various business guidelines that prohibit rural banks from financing small businesses. small rural banks lack the necessary financial expertise to counter the risks involved with small-business loans. small rural banks believe that small businesses lack the flexibility to adapt to changing market demands. government regulations do not permit financing small rural businesses. small businesses require a huge sum of money as they often compete in the mass market.
- Fall '16
- carey winset