.A friend of yours has recently received his MBA. He wants to open his own business but feels that it might be too riskyat this point in his career. As an SBA counselor, you are able to advise him and explain more clearly to him some ofthe advantages and disadvantages of starting a small business. Which of the following statements best representssomething you might tell him?
A.Small businesses foster personal relationships and offer flexibility and independence
B.The cost of opening a small business is relatively low, and financing is easily obtained.
C.Although opening a small business is risky, there is practically unlimited potential.
D.Record keeping will be complicated, and public disclosure of most transactions is required.
E.Opening a small business is especially difficult because there is little help available for those desiring to do so.
2.A furniture manufacturer like Thomasville would be concerned with the producer price index because it
A.measures the effect of interest rates on the economy.
B.tracks the cost of housing and transportation.
C.measures prices that manufacturers must pay for lumber and other raw materials used in the manufacturingprocess.
D.is related to the real gross domestic product.
E.is published daily.
3. A limited-liability company is
A.taxed like a partnership
B.always used to organize charitable organizations
C.similar to a cooperative
D.the result of a horizontal merger
E.taxed like a corporation