1. When is the Best Time to Quit? Entrepreneurs are, by nature, stubborn. The late Dave Thomas, founder of Wendy’s Old Fashioned Hamburgers, often recounted how many of his friends and advisors recommended that he not start Wendy’s since the United States already had plenty of fast-food restaurants. Many new businesses fail, and knowing when to get out can be as important as when to keep going. Let’s say that you began a software design business after graduating from college. Your first year accounting profit is $25,000. Should you continue in the business or should you leave?

2. Related to Solved Problem 9.6 on page 297 In 2013, Sony announced that it had suffered losses selling televisions for the ninth straight year. Given the strong consumer demand for plasma, LCD, and LED television sets, shouldn’t Sony have been able to raise prices to earn a profit? Briefly explain.