AJand April Couch Just Opened a Computer Store in a Small

question 208

Multiple Choice

A.J.and April Couch just opened a computer store in a small community.Before opening the store,they listened to their SBA counselor's warnings about the importance of having balanced experience,that is,marketing,finance,and personnel experience in the computer-store business because

• A) their business is unlikely to grow and earn large business profits.
• B) the computer-store business is a fad.
• C) management know-how is insignificant to small-business success.
• D) small businesses survive large businesses by three years.
• E) about two out of three small firms close within five years of their founding.

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Definitions:

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Team Creativity

The process and outcome of generating novel and useful ideas and solutions through the collaborative efforts of a group or team.

Electronic Brainstorming

A group creativity technique using digital tools to generate ideas, where participants contribute their ideas electronically and anonymously to foster innovation.

Upper Echelon Theory

A theory suggesting that an organization's outcomes are influenced by the personal backgrounds and characteristics of its top executives.