Which of the Following Statements Best Describes the Possibilities for Small

question 193

Multiple Choice

Which of the following statements best describes the possibilities for small businesses in global markets?

• A)Small businesses already dominate global business.In fact,most multinational corporations are actually quite small.
• B)Small businesses are often better prepared to enter global markets than large,bureaucratic corporations.
• C)Small businesses have little chance of competing against giant multinational corporations in global markets.
• D)The main problem faced by small businesses in global markets is that franchise arrangements favoured by small business owners are illegal in most countries.

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Definitions:

Marginal Cost

The expense incurred in creating an extra single unit of a product or service.

Price Elasticity

A metric that determines how the demand for a certain good fluctuates with its price adjustments.

Marginal Revenue

The additional income that an organization receives from selling one more unit of a good or service.

Profit Maximizing

The process or strategy by which a firm adjusts its production to achieve the highest possible profit.