Cottage Industries & Small Businesses

Food processing such as Jams and Jellies are create from cottage industries in Jamaica.

• True

• False

All of the following are features of cottage industries except

• The firm uses simple tools and equipment

• Usually a one-person business

• Mass produce designer products

• Uses local raw material

Two importance of Cottage Industries are:

• provide opportunity to use one’s skills

• provide roads and transportation

• provide employment

• improve the health of the citizens

Select the most appropriate definition of small business

• A small business is an independently owned and operated company that is limited in size and in revenue depending on the industry

• A small business is one that is owned by the shareholders and raise capital through the selling of shares on the stock market.

Identify the features of a small business

• Many small businesses are family oriented

• Workers in small firms specialize base on their skills and education level.

• Small firms are often characterized by a wide variety of tasks and skills.

• These are firms which cannot easily be divided into departments, since they lack the space and personnel.

Small firms provide employment for many, especially in rural areas. What other role does a small firm plays in the Caribbean community?

• They provide services that are not provided by larger firms

• Small firms manage the demand of the country

Small firms are often linkages to larger firms in the community obtaining materials from them or supplying them.

• True

• False

• Somewhat True

• Somewhat False

All are reasons why firms remain small EXCEPT_____________

• For many firms, the most efficient size is the small firm.

• The owners of some small firms do not have the necessary management and technical skills needed for a larger business.

• To keep the business in the family

• To attain maximum profit from the business.

They provide goods and services that are not provided by larger firms.

• True

• False

One major disadvantage that a small firm may experience is

• Limited liability

• No liability

• Unlimited liability