A Review of Small Business Successes and Failures Indicates That

question 186

Multiple Choice

A review of small business successes and failures indicates that the:

• A)businesses that are easiest to start offer the greatest potential for long term growth and profits.
• B)reason the service sector is rapidly growing is that these firms are easy to start and keep going,and offer high levels of security and growth potential.
• C)restaurant industry offers the least risk for entrepreneurs.
• D)businesses with the potential of high profit levels tend to be difficult to start and hard to keep going.

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Definitions:

Free Transferability

The ability to freely transfer assets or shares from one party to another without restrictions.

Close Corporations

Corporations characterized by a limited number of shareholders, no public market for the shares, and often involving family members or close associates in the business operations.

Balance of Power

A political concept aimed at preventing any one nation or group of nations from becoming too powerful, thereby maintaining stability and preventing dominance.

Buy-and-Sell Agreement

A legally binding agreement between co-owners or shareholders that outlines the conditions under which one's interest in a business can be sold or transferred.