You Are Conducting a Business Startup Workshop Sponsored by the Small

question 200

Multiple Choice

You are conducting a business startup workshop sponsored by the Small Business Administration. The workshop attendees are all aspiring business owners who are excited and fearful about the prospect of starting their own business. Early in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new business. The majority of the respondents indicated their biggest concerns were limited capital and lack of business experience.Based on these concerns, which of the following business strategies do you think would be most appropriate for these workshop attendees? ​

• A)Start their business as a full-service wholesaler
• B)Start their business as a franchisee
• C)Start their business as a mail-order wholesaler
• D)Start their business as a merchant wholesaler
• E)Start their business as a franchiser

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Definitions:

Domestic Investment

The total capital expenditure within a country's borders on physical assets such as buildings, machinery, and equipment, contributing to the national economy.

Net Exports

The value of a country's total exports minus the value of its total imports. It is a key component in calculating a nation's GDP.

Capital Flight

The rapid movement of large sums of money or assets out of a country due to economic or political instability, leading to a decrease in domestic investment.

Interest Rate

The percentage of a loan amount charged by lenders to borrowers for the use of money, expressed as an annual percentage rate.