Small Businesses Are Much More Likely to Fail Than Large

question 1

Multiple Choice

Small businesses are much more likely to fail than large businesses, especially during economic downturns, because of:

• A) management shortcomings.
• B) difficulty dealing with government regulations.
• C) inadequate financing.
• D) all of the above.

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Definitions:

Heuristics

Problem-solving strategies that use a practical approach or shortcuts to produce solutions that are not perfect but sufficient for the immediate goals.

Transductive Reasoning

A type of thinking commonly seen in early childhood where the child makes connections between unrelated events.

Cause-Effect Relationships

The principle of causality that establishes the relationship between something that happens (the cause) and the thing that happens as a result (the effect).

Precausal Thinking

A type of logic in young children characterized by a lack of understanding of cause-and-effect relationships.