Small Businesses

A small business usually has the same premises of the owner's home

• TRUE

• FALSE

Which is NOT a function of a small business

• Creates employment

• Provides services large firms are not willing to produce

• Often reply on the use of local materials

• Cater to niche markets

What is a 'niche market'

• A small target group of customers who prefers a particular product or serive

• A large target group of customers

• Customers who do not know what they prefer

• A market that is too small to produce for

Maintaining a good relationship with customers is a disadvantage for a small business owner

• TRUE

• FALSE

Which is an advantage of a small business?

• Creates employment in the local community

• Lack resources necessary to offer a rage of products

• Does not generate income

• Business is a sole trader

Why may banks and other lenders be reluctant to give loans to small business owners?

• The owner does not have enough capital

• Small business owners cant offer a wide range of products

• It is risky because small business owners have few assets

• The banks do not care about small business owners

Small businesses and cottage industries are the same

• TRUE

• FALSE

Write your own definition of a 'small business'