Greg Benefited from His Experience Working for an Established Private

question 262

Multiple Choice

Greg benefited from his experience working for an established private company that provided innovative lighting for large music venues. Although confident that he could start his own lighting business, he had limited capital to buy the necessary equipment needed to successfully compete with established companies. Which of the following strategies would best help Greg achieve his goal of business ownership?

• A) Begin by offering to take over management of his employer's business, allowing the owner to enjoy some leisure time
• B) Consider working for a major corporation, live modestly, and save until he has sufficient funds to start his business
• C) Enroll in the closest university and apply for student loans
• D) Open his business and trust that his work experience will bring him success even with insufficient capital

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Definitions:

Car Market

The industry related to the manufacturing, selling, and buying of automobiles.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is distributed to yield the highest aggregate utility.

Willingness To Pay

The maximum amount a consumer is prepared to spend to acquire a good or service.

Acceptable Price

The price at which consumers feel they are getting good value for the products or services purchased.