Calvin Is Thinking About Starting a Small Business and Is

Multiple Choice

Calvin is thinking about starting a small business and is trying to assess the potential opportunities and threats associated with a new start-up. He's talked with friends and associates about his plans, and several have offered him opinions and advice. The comments of four friends are summarized below. Which of these statements would probably be the most helpful to Calvin?

A) Aim your efforts at the broadest possible market segments. Those are the ones that offer you the greatest potential to make profits quickly.
B) One advantage of operating a small business is the fact that you don't have to worry very much about government regulation.
C) Focus on the domestic market. There is no practical way for you to compete effectively against big businesses in foreign markets.
D) You are likely to face some lean months at first, so manage your money carefully. Avoid the temptation to make splashy purchases.