Which of the Following Statements Regarding Firm Growth Is Incorrect

question 53

Multiple Choice

Which of the following statements regarding firm growth is incorrect?

• A) Most entrepreneurial firms want to grow.
• B) Growth in sales revenue is a poor indicator of an entrepreneurial firm's potential to survive today and be successful tomorrow.
• C) Firm growth is exciting.
• D) Many entrepreneurial firms have grown quickly, producing impressive results for their employees and owners.
• E) Growing a business successfully requires preparation, good management, and an appreciation of the issues involved.

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Definitions:

Free Rider

An individual who benefits from resources, goods, or services without paying for the cost of the benefit.

Nonexcludable

Describes a good or service that prevents individuals from being excluded from using it; typically, because it is not feasible or cost-effective to do so.

Inefficiently High Level

A scenario where more resources are used than necessary, leading to waste and inefficiency.

Common Resource

A type of good that provides benefits to many individuals, but which has the potential to be depleted or overused because it is not excludable.