Small Business Management and Social Responsibility
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Questions and Answers

What are the economic factors affecting June's decision to raise capital for expansion?

Unemployment, high average incomes, rapid slowdown in economic growth, higher world prices of energy and raw materials, increasing inflation rate, rising interest rates, and forecasted depreciation of the currency.

How does the closure of the multinational business' factories in Country A impact the economy?

It contributes to the forecasted rapid slowdown in economic growth.

What challenges does the forecasted depreciation of Country A's currency pose for June's restaurant?

It may lead to increased costs for imported goods and potential impact on profit margins.

What is the cost of the first strategy option for expanding the restaurant?

<p>$200,000</p> Signup and view all the answers

What type of organizational structure does June's small business use?

<p>Hierarchical</p> Signup and view all the answers

What is June considering for the end of the year in terms of corporate responsibility?

<p>Social audit</p> Signup and view all the answers

What is the risk associated with keeping the restaurant as it is?

<p>Customers might become tired of waiting for a table and go to new restaurants</p> Signup and view all the answers

What economic factors should June consider before deciding to raise capital for expansion?

<p>Unemployment, average incomes, economic growth, inflation rate, interest rates, currency value</p> Signup and view all the answers

How might the closure of the multinational business' factories in Country A affect June's restaurant?

<p>It could lead to increased competition for resources, potential loss of customers, and changes in market dynamics.</p> Signup and view all the answers

What impact do higher world prices of energy and raw materials have on June's decision to raise capital for expansion?

<p>They could potentially increase the cost of operations, affecting profit margins and investment feasibility.</p> Signup and view all the answers

What are the two alternative strategies June is considering for expanding her restaurant?

<p>Double the size of the restaurant with high-quality fittings or a smaller extension with the same fittings as now</p> Signup and view all the answers

What is the potential advantage of the larger expansion strategy for June's restaurant?

<p>It would allow June to charge higher prices and try to appeal to a higher-income market segment.</p> Signup and view all the answers

What is the primary concern associated with the smaller extension strategy for June's restaurant?

<p>It is less risky but would not have as high an economic return because it is smaller and there would be no opportunity to raise prices.</p> Signup and view all the answers

What does June risk if she chooses to keep her restaurant as it is?

<p>Customers might become tired of waiting for a table and go to one of the new restaurants that have recently opened in the town.</p> Signup and view all the answers

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