Title: Why Some Ventures Fail
Course: Demo 1

Q: Many small business startups fail due to a lack of planning. In order to avoid this, the business owner needs to ________.
- set clear goals of where he/she wants the business to be in the future
- establish a workable plan for how the business can achieve goals
- wait until the end of the 2nd year to set goals for the business
A: set clear goals of where he/she wants the business to be in the future; establish a workable plan for how the business can achieve goals

Q: According to the SBA’s new small business survival statistics, if 100 new businesses started a year ago only ________ are still operating.
- 50
- 80
- 20
A: 20

Q: As the owner you are responsible for everything that goes on in your business, but you still need to stay focused on the bigger picture. In order to be more effective and efficient, you need to ________.
- delegate responsibility for routine tasks
- work longer hours
- prohibit your employees from making decisions on their own
A: delegate responsibility for routine tasks; work longer hours; prohibit your employees from making decisions on their own

Q: In 1972, Atari Inc. became a pioneer in home video game industry. There was nothing like it in the market. As time moved on however, by the mid 1980’s more companies had entered the market with fresher graphics and catchier games. Atari was slow to change and lost market share rapidly which began a swift decline. This is a good example of ________.
- failure to delegate tasks and focus on the bigger picture
- forgetting that cash is king and losing liquidity
- unwillingness to change in response to competition
A: unwillingness to change in response to competition

Q: Radio Shack was founded in 1921 as a specialty retailer of electronic parts and components. Starting in the mid-1990s, the company attempted to move out of small components and into more mainstream consumer markets, focusing on marketing wireless phones. This placed the chain, long accustomed to charging wide margins on specialized products not readily available from other local retailers, into direct competition with larger vendors such as Best Buy and Walmart. By 2015, Radio Shack filed bankruptcy and closed its remaining US stores. The failure of Radio Shack is an example of a business that
- failed to delegate tasks and focus on the bigger picture
- forgot that cash is king and lost liquidity
- was unwilling to change in response to competition
A: was unwilling to change in response to competition

Q: As a startup or an established business, if you neglect to track your current ________ your business is more likely to fail.
- mission statement
- organizational structure
- cashflow
A: cashflow

Q: Maria started a business last year designing websites for small business. She spent money on social media advertisements, handed out flyers at business fairs, advertised in the local newspaper and phone book. Maria sat down one day to look over her finances and she realized she hadn't tracked how successful any of these advertising campaigns had been. This is an example of ________ which can lead to business failure.
- word of mouth advertising
- unwillingness to change
- lack of objective targets
A: lack of objective targets

Q: Maria started a business last year designing websites for small businesses. She started her business without consulting the small business development center in town or asking which type of legal entity would be the best for her business. Maria sat down to fill out her taxes and realized she didn’t know which form to use. She decided just to fill out an individual income tax form. By not seeking expert guidance, Maria is ________, and this exposes her to greater risk of business failure.
- forgetting that cash is king
- unwilling to change
- failing to ask the right questions
A: failing to ask the right questions

Q: Margaret had been baking cakes for friends and family for several years when she decided to open a bakery in her hometown. She cashed in her retirement account and with the money rented space downtown, purchased some equipment and had signs painted and erected announcing her grand opening. She started selling cakes and pies on the first day and after one month declared that her business was a success. However, a few days later the city health inspector arrived and immediately shut her business down because she had not applied for the permits necessary to run a bakery. Later that same week she received a letter from the city informing her that her business was in violation of the city zoning ordinances and would not be permitted to reopen. By not investigating the proper permits, licenses and zoning laws Margaret has now lost all of her retirement and her business is closed. This could have been avoided if Margaret had known:
- that cash is king
- that change is inevitable in small businesses
- to ask the right questions
A: to ask the right questions

Q: If you are a small business owner, which of the following are common pitfalls to avoid?
- getting stuck on the details and missing the big picture
- losing sight of cash incomings and outgoings
- adapting your business as the market changes
A: getting stuck on the details and missing the big picture; losing sight of cash incomings and outgoings