Study Guide Answers Chapter 4: Business Assessment Scales

1. Four reasons include:

• to identify a general career path if the consumer is unsure of the type of business to open
• to help determine the type of business to open
• to identify deficient areas to remedy with training, education, or experience
• to determine self-employment potential for both the individual and the business

2. unvalidated

3. Most of the questions are transparent or leading so that a respondent can easily figure out the desired answer. Many questions require dichotomous responses that don't measure the strength of frequency of a trait. Finally, the assessments are culturally and sexually biased.

4. Three advantages include:

• consistent - people are evaluated on the same measures
• defensible - all information is used in a consistent manner
• efficient - gathers only information relevant to starting a business

5. The Business Assessment Scale should be used before developing the IPE along with the Beginning to Develop Your Business Plan and the Monthly Personal and Living Expenses Worksheet to identify people who are likely to succeed in self-employment; to identify knowledge, skills, and experience that the consumer needs to acquire before opening the business; and it identifies people likely to fail even with additional training. It should be used again after the consumer completes training and the business plan. At this time, the BAS assesses both the individual and the business.