Use the Following to Answer Questions

question 103

Multiple Choice

Use the following to answer questions:
Scenario 7-2. Jack loves computers and has since he was a child. He spends every waking hour programming, rebuilding, and tinkering with any computer he can find. He has just graduated with a Bachelor's Degree in Computer Science and is trying to decide what to do with the rest of his life. The computer stores in the town in which he lives are not places he would want to work. They are known for slow service, lack of quality computers, and inability to service the computers they sell. He is contemplating opening his own small business; however, lack of funds is his major problem. To deal with his lack of funds, initially he would concentrate on repair and service of existing computer systems and then expand into selling new computers as his capital base grew. He knows he could do a better job with customer service than what his competitors currently are doing.
-In Scenario 7-2 above, which of the following types of business should Jack begin?

• A) Purchase an existing business
• B) Start his own business
• C) Purchase a computer franchise
• D) Wait and inherit his father's construction business

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Definitions:

Compromise Policy

A policy approach that seeks a middle ground or mutual concessions among different interests or positions.

Constant Dividends

Dividend payments that are expected to remain at a fixed rate over time regardless of changes in the company's earnings or profitability.

Selling Equity

Entails a company offering a portion of its ownership to investors in exchange for capital.

Compromise Policy

A strategy that aims to find a middle ground among differing opinions or conditions in policy-making.