Small Businesses Tend to Be

question 19

Multiple Choice

Small businesses tend to be:

• A) balanced between labour and capital intensity.
• B) labour intensive.
• C) capital intensive.
• D) none of the answers are correct.

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Definitions:

Net Borrower

An entity or individual that borrows more money than it lends, resulting in a net debt position.

Net Saver

An individual or entity that saves more money than they spend or invest, contributing positively to their financial assets over time.

Utility-Maximizing

Represents the economic principle where individuals or firms make choices that result in the highest possible level of satisfaction or efficiency within their constraints.

Lender

An individual, institution, or entity that provides funds to another with the expectation that the funds will be repaid, often with interest.