1. Which of the following accurately brings out the distinction between small business and larger firms?
a) in larger firms, decisions can be made and executed more quickly than small firms.
b) small businesses require more money to start and maintain than do large ones.
c) unlike smaller businesses, larger firms are not equipped to focus on mass markets or wide market segments.
d) unlike owners of large firms, small business owners do not have to multitask
e) small businesses can develop and introduce a new product in a much shorter time than a large one
2. A(n) _____ is a precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals.
a) promissory bill
b ) business plan
c ) income statement
d)statement of purpose
3. Rachel started a chain of salons using money accumulated in her life-insurance policy. Which of the following sources of capital has Rachael used to start her business?
a) insurance capitalization
b) Venture capital
c) Initial public offering
d) Debt financing
e) Equity financing
4. Which of the following statements about high-technology businesses is true?
a) High-technology businesses have low initial startup costs.
b) High-technology businesses require greater capital than other small businesses.
c) Unlike retailing, high-technology as an industry is not suitable for small businesses and entrepreneurs.
d) Business owners in high technology industry find it impossible to focus on specific groups of consumers.
e) The barriers to entry are lower for businesses in high technology than retailing. Income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract. Determine the future worth in year 10 of a mineral lease that yielded income of $14,000 in years 1 through 4 and then amounts that decreased by 5% per year through year 10. Use an interest rate of 18% per year. Show spreadsheet solutions. mission statement