A Review of Small Business Successes and Failures Indicates That

question 261

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) restaurant industry offers the least risk for entrepreneurs.
• C) businesses with potential of high profit levels tend to be difficult to start and hard to keep going.
• D) 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.

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Definitions:

Risk Analysis

The process of identifying, assessing, and prioritizing risks to the project and planning for potential mitigation.

Industry Type

Classifications of various sectors of the economy based on the primary activity they engage in, such as manufacturing, services, or technology.

Risk Averse

A trait or behavior where an individual or entity prefers to avoid risk rather than facing uncertainty, often opting for safer alternatives.

Risk Checklists

Tools or lists used to identify, assess, and manage potential risks in a project or operation.