For a Business to Be Successful in the Early Growth

question 42

Multiple Choice

For a business to be successful in the early growth stage of the organizational life cycle, the two important things that must happen are ________.

• A) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role, and increased formalization must take place
• B) a decision must be made whether the owner-manager and the current management team is capable of taking the business further, and the organization must start laying the groundwork for future growth
• C) increased formalization must take place, and the business must achieve price stability
• D) a decision must be made whether the owner-manager or the current management team is capable of taking the business further, and business partnerships must be established
• E) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role, and the business must be cash flow positive

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Definitions:

Create Corporations

The act of establishing a company or business entity recognized by law as a single entity.

Economic Infrastructure

The underlying economic systems and structures that support economic activity, such as transportation networks, telecommunications, utilities, and financial institutions.

Factory Workers

Individuals employed in industrial or manufacturing settings, responsible for operating machinery, assembling products, or performing tasks related to the production of goods.

Labor Force

The total number of people who are of working age, being able and willing to work, including those who are employed and those who are seeking employment.