As His Small Business Prospers and Grows from Stage 1

question 53

Multiple Choice

As his small business prospers and grows from Stage 1 to Stage 4, Carlos Perez realizes that he also must grow by increasing his

• A) doing skills.
• B) advertising skills.
• C) managing skills.
• D) legal skills.

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Definitions:

Porter's Five Forces

A framework analyzing a business's competitive environment based on five key forces: competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entrants.

Zero-Sum Game

A situation in which one participant's gains or losses are exactly balanced by the losses or gains of the other participants.

Profitability Expense

A cost incurred by a business that is considered when calculating its profitability, often relating to the operational, production, or administrative aspects of the company.

Rivalry Among Firms

The competition between businesses in the same industry to gain increased revenue, market share, and customer loyalty.