Ch. 7 (Causes of Small Business Failure)

Question 1

causes of small business failure (1/12)

Answer 1

plunging in without first testing the waters on a small scale

Question 2

causes of small business failure (2/12)

Answer 2

underpricing or overpricing goods or services

Question 3

causes of small business failure (3/12)

Answer 3

underestimating how much time it will take to build a market

Question 4

causes of small business failure (4/12)

Answer 4

starting with too little capital

Question 5

causes of small business failure (5/12)

Answer 5

starting with too much capital and being careless in its use

Question 6

causes of small business failure (6/12)

Answer 6

going into business with little or no experience and without first learning something about the industry or market

Question 7

causes of small business failure (7/12)

Answer 7

borrowing money without planning just how and when to pay it back

Question 8

causes of small business failure (8/12)

Answer 8

not allowing for setbacks and unexpected expenses

Question 9

causes of small business failure (9/12)

Answer 9

buying too much on credit

Question 10

causes of small business failure (10/12)

Answer 10

extending credit too freely

Question 11

causes of small business failure (11/12)

Answer 11

expanding credit too rapidly

Question 12

causes of small business failure (12/12)

Answer 12

failing to keep complete, accurate records, so that the owners drift into trouble without realizing it