Question

A.J. and April Couch just opened a computer store in a small community. Before opening the store, they listened to their SBA counselor'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.

Answer 1

Answer:

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
• only 30% survive their tenth year