Stating That the Failure of a Small Business Was Due

question 37

Multiple Choice

Stating that the failure of a small business was due to "lack of experience" implies:

• A) not having expertise in the essentials of business operations, including finance, purchasing, selling, and production.
• B) not taking the time to craft a vision and mission, nor to formulate and properly implement a strategy.
• C) not keeping track of the numbers, and failure to control business finances and use existing monies to best advantage.
• D) not taking the time to consolidate a position, fine-tune the organization, and systematically meet the challenges of growth.
• E) not having sufficient know-how to run a business in the chosen market or geographical area.

---

Definitions:

Gross Margin

The difference between the revenue a company brings in from selling goods and the cost of those goods sold, typically expressed as a percentage of revenue.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company.

Service Quality

Refers to the comparison between customer expectations regarding a service and their perception of the service received, focusing on how well a service meets or exceeds customer standards.

Corporate Strategy

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals.