Which of the Following Is a Difference Between Large Organizations

question 13

Multiple Choice

Which of the following is a difference between large organizations and entrepreneurial businesses?

• A)Unlike entrepreneurial businesses, large organizations have a better understanding of the local community in which they conduct business.
• B)Unlike entrepreneurial businesses, large organizations will regularly ignore business opportunities if they fail to believe the results will generate high profits.
• C)Unlike large organizations, entrepreneurial businesses are burdened by policies, procedures, corporate layers of management, and public stockholders.
• D)Unlike large organizations, entrepreneurial businesses do things more efficiently because they are easily able to achieve economies of scale.

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Definitions:

Fixed Costs

Fixed expenses that are unaffected by the amount of goods produced or sold, for example, rent, salaries, and insurance payments.

Profit

Profit is the financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Operating Income

Income generated from a company's regular business operations, excluding one-time events and expenses.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.