You are conducting a business startup workshop sponsored by the Small Business Administration. The workshop attendees are all aspiring business owners who are excited and fearful about the prospect of starting their own business. Early in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new business. The majority of the respondents indicated their biggest concerns were limited capital and lack of business experience. Based on these concerns, which of the following business strategies do you think would be most appropriate for these workshop attendees? A. Start their business as a full-service wholesaler. B. Start their business as a merchant wholesaler. C. Start their business as a franchisor. D. Start their business as a mail-order wholesaler. E. Start their business as a franchisee.

Question

Business

Aimee Wiley

21 May, 01:38

You are conducting a business startup workshop sponsored by the Small Business Administration. The workshop attendees are all aspiring business owners who are excited and fearful about the prospect of starting their own business. Early in the workshop, you asked the attendees to complete a questionnaire about their major concerns in starting a new business. The majority of the respondents indicated their biggest concerns were limited capital and lack of business experience. Based on these concerns, which of the following business strategies do you think would be most appropriate for these workshop attendees? A. Start their business as a full-service wholesaler. B. Start their business as a merchant wholesaler. C. Start their business as a franchisor. D. Start their business as a mail-order wholesaler. E. Start their business as a franchisee.

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Answers (1)

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Pete · Answer 1

E: Start their business as a franchisee.

Explanation:

A franchisee is the safest bet under this circumstance. Firstly, the franchisor is charged with the responsibility of providing the requisite training. Secondly a franchise is not so expensive to set up and can be implemented with a modest capital base.