As a former classmate of Pepe's at the nearby university, you remind him what you both learned in your small business management class several years ago. What would you remind him?

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Business

Desirae Griffith

16 October, 09:34

As a former classmate of Pepe's at the nearby university, you remind him what you both learned in your small business management class several years ago. What would you remind him?

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Ivan Fields · Answer 1

This question is incomplete. The complete question should be:

As a former classmate of Pepe's at the nearby university, you remind him what you both learned in your small business management class several years ago. What would you remind him?

a. Restaurants are easy to start up, but diﬃcult to keep going.

b. Restaurants are probably the most diﬃcult type of business to start up, due to the labor-intensive aspects of the business.

c. Experts believe that restaurants have a high profit potential, due the fact that there is not much direct competition.

d. Restaurants are easy to start up and have great profit potential.

Answer:

(A). Restaurants are easy to start up, but diﬃcult to keep going.

Explanation:

Businesses that are easy to start up have higher chances of failing, while businesses that are difficult to establish have lower chances of failing.

Restaurants are examples of business that are easy to establish (due to factors like low barrier to entry in the industry) but have high chances of failing (which may be due to factors like, wrong choice of location and inconsistent food).