A friend of yours has recently received his MBA. He wants to open his own business but feels that it might be too risky at this point in his career. As an SBA counselor, you are able to advise him and explain more clearly to him some of the advantages and disadvantages of starting a small business. Which of the following statements best represents something you might tell him?
A) Although opening a small business is risky, there is practically unlimited potential.
B) The cost of opening a small business is relatively low, and financing is easily obtained.
C) Record keeping will be complicated, and public disclosure of most transactions is required.
D) Small businesses foster personal relationships and offer flexibility and independence.
E) Opening a small business is especially difficult because there is little help available for those desiring to do so.
Question 2
A venture capital firm
A) provides financing to only large businesses.
B) looks for business that will provide a steady, average return.
C) receives corporate bonds from firms it finances.
D) consists of a pool of investors or a family partnership.
E) is a large, diversified corporation looking for investment opportunities.
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