A.J. and April Couch just opened a computer store in a small community. Before opening the store, they listened to their SBA cou
nselor's warnings about the importance of having balanced experience, that is, marketing, finance, and personnel experience in the computer-store business because1. small businesses survive large businesses by three years.2. the computer-store business is a fad.3. their business is unlikely to grow and earn large business profits.4. management know-how is insignificant to small-business success.5. about two out of three small firms close within five years of their founding.
5) about two out of three small firms close within five years of their founding.
Explanation:
A prefer to use statistics in a positive way an disclose not the failure rates of small businesses (which are really high), but instead focus on the success rate.
from the total original amount (100%)
80% of small businesses survive their first year of operations
70% of small businesses survive their second year of operations
between 40-50% of small businesses survive their fifth year of operations
Price Earning ( P/E) Ratio is computed as : Market Price of the Stock / Earnings per Share (EPS) or
Market price of the stock = P/E Ratio x EPS
Market price of Novartis share = 13.24 x $ 3.35 = $ 44.35
Price to Book ( P / B) :
Go to the balance sheet of the company. Find out the book value of stockholders' equity. Divide the value by the number of common shares outstanding. That would give you the book value of each common share. Divide the market price of the stock by its book value. This is the P/B ratio.
When a person tries to recall some information that are older in nature and comes to know about some recent information it refers to Retroactive interference. For instance you may call the name of your grandmother with the name of your mom. There will be a retroactive interference with the two names.
This happens when you forget some tasks that are learnt in past because of the learning of new tasks. In the given example, Lamar only rememnbers the names of the people in the first group and remebers the profession of the last women met by him. His experience demonstrates retroactive interference.
