Carrie, a Student at Metropolitan Community College, Dreams of Starting

question 174

Multiple Choice

Carrie, a student at Metropolitan Community College, dreams of starting her own business. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help Carrie the most?

• A) The best way to learn about running a business is by getting hands-on experience. You should quit school and put your dream into action.
• B) Take courses related to small business management and look for a job with a successful businessperson, preferably in your field of interest.
• C) Since every business is unique, don't worry about advice from others. Go to a bank, get a business loan, and live your dream.
• D) Starting and managing a small business requires little more than common sense. If your idea is unique, hard work will guarantee your success.

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Definitions:

ABC Analysis

A method for classifying inventory or items into three categories (A, B, and C) based on their importance, usually determined by value or usage rate.

Inventory Savings

Reductions in costs achieved through efficient management of stock, including ordering, storing, and using goods or materials.

Economic Order Quantity

A calculation that determines the optimal order quantity that minimizes total inventory costs, including holding, ordering, and shortage costs.

Safety Stock

An extra quantity of inventory kept on hand to prevent stockouts caused by unpredictable demand or supply delays.