=7. Which of the following is least likely to influence
the timing of new business births ?
(a) Government policies
(b) Profitability
(c) Consumer expenditure
Weather conditions
Answers
(d) Weather conditions are least likely to influence the timing of new business births.
Let us analyse the options:
(a) Government policies- Government policies greatly affect the prospects of a new business in terms of compliance laws, taxes and penalties that may be applicable to the goods or services taken by or provided by a business.
(b) Profitability- Businesses are started keeping profitability in mind. So, this is a major criteria that affects start-ups. An industry with low profitability will have fewer business start-ups.
(c) Consumer expenditure- The timing of new business births usually coincides with the time of the year when the consumer is willing to spend more than usual, as during the festive season.
(d) Weather conditions- They have the least effect on the blooming of new businesses. Therefore, this is the right answer.