Avoiding Overextension of Finance and other Resources

Create an engaging image representing resource management in business, featuring concepts like finance, staff, and stock control, with visuals of an entrepreneur strategically planning and managing resources.

Avoiding Overextension Quiz

Test your knowledge on avoiding overextension of finance and resources in business. This quiz covers key concepts that every entrepreneur should be aware of to sustain growth and stability.

Understand the stages where businesses typically overextend
Learn about the impact of excessive borrowing and hiring
Get tips on effective resource management

8 Questions2 MinutesCreated by ManagingTree421

A business can overextend by:

Using hire purchase and/or leasing commitments made on cars, equipment, office furniture, plant and machinery and the premises

Purchasing excess stock

Employing too many staff for the business’s current needs

All of the above

What can purchasing property lead to?

Overextension of resources

Overborrowing

Stockpiling

Excess expenditure

Overextension of staff is due to over-optimism of what?

Appropriate job allocations

Hiring

Sales goals

Overextension of stock can be reduced by

Avoiding stockpiling and keeping only to limited supplies and order regularly

Ordering in bulk only when on sale for cheapest price

Leasing

How can you avoid overextending finance

Have a business plan

Avoid an over dependence on debt financing

Have long-term financial planning

Starting small and allowing the market to determine the right times for expansion and growth

All of the above

About how many stores did target open in the first 10 months of extending to Canada?

140

100

120

Avoiding Overextension of Finance and other Resources

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