Which of the Following Will Not Help Your Small Business

question 304

Multiple Choice

Which of the following will not help your small business succeed?

• A) Services you perform are easily replicated by larger companies, such as online banking.
• B) You provide a unique service that requires a significant amount of personal attention such as a service that provides in-home care for seniors.
• C) Investing in a franchise.
• D) Your product is not easily mass produced, like professional photography.

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Definitions:

Income Share

The proportion of total income earned by a specific group, often used in discussions of income inequality.

Normal Profit

The minimum level of profit necessary for a company to remain competitive in the market, essentially covering opportunity costs.

Economic Profit

Profits calculated after considering both explicit costs, like materials and labor, and implicit costs, like opportunity costs, differentiating it from accounting profits.

Pure Rate of Interest

The theoretical return on an investment with no risk of financial loss, representing the time value of money.