Which of the following statements do you think is generally true, within the UK:- many more businesses start up each year than close
- many more businesses close each year than start-up
- about the same number of businesses start-up each year as close
- we have no idea how many businesses start and close each year
- the number of businesses that start-up and close each year varies enormously
- Which of the following factors does the ‘macro-environment’ not include:
- political and regulatory factors
- customer needs in a given market
- social and demographic factors
- technological changes
- economic conditions
- Which of the following is least likely to influence the timing of new business births?
- Government policies
- Profitability
- Interest rates
- Consumer expenditure
- Weather conditions
- Storey cites eight possible factors that may lead to higher rates of new firm formation within a given geographic area. Which of the following is not one of these factors?
- education
- population growth
- wealth
- unemployment
- housing
- Strong ties are always preferable to weak ties.
True / False- True
- False
- Which of the following best describes the nature of a market?
- a place where people talk to each other
- the various organisations that produce a particular product or service
- existing or potential customers for a given product or service
- the firms that produce and sell products and services that are close substitutes for one another
- the ways in which businesses reach their customers
- Which of the following is usually not a barrier to market entry for a small firm?
- economy of scale
- good ideas
- switching costs
- access to distribution
- capital requirements
- Which of the following statements is false?
Electronic commerce:- can allow new ventures to compete on more or less equal terms with large firms
- offers a relatively inexpensive means of advertising and conducting market and competitor research
- can lead to small businesses having reduced contact with its customers
- is rarely used in small businesses
- is used in many different industries and markets
- A closed business equates to a failed business. True or False?
- True
- False
- Which of the following ‘forces’ are not part of the Five Forces model of industry competition?
- Potential for entry
- Power of suppliers
- Power of thought
- Power of buyers
- Power of substitutes