1. Why did the vehicles take so much of James Davidson's time when he first started up? a. He had to buy the vehicles one by one in separate deals. b. He had to

1. Why did the vehicles take so much of James Davidson's time when he first started up?
a. He had to buy the vehicles one by one in separate deals.
b. He had to shop around for the best sources oh cheap cars.
c. He had to do some of the maintenance himself to save money.

2. What problem with customers did Davidson encounter?
a. They expected his rates to be cheaper because the cars were second-hand.
b. They changed to his competitors who had newer cars.
c. They treated older cars roughly.

3. What was the main problem with insurance?
a. Insurance companies refused to pay compensation in certain cases.
b. The full cost of repairs exceeded the amount paid by insurers.
c. Pay-outs from insurance companies were often late.

4. Why did he choose Guernsey as the location for his insurance company?
a. Government officials there were more helpful.
b. The process for doing it was less complicated.
c. It was more advantageous financially.

5. What is the main topic of this text?
a. How an entrepreneur overcame problems in the early days of his business.
b. How franchise operations should be started in order to run profitably.
c. How a business nearly failed because of excessive overheads.