When Comparing Small Businesses to Their Larger Competitors, It Is

question 16

Multiple Choice

When comparing small businesses to their larger competitors, it is clear that

• A) bigger is always better.
• B) small firms can always outperform big firms on a level playing field.
• C) small firms often can offer more personalized customer services than big firms.
• D) small firms are slower to respond to opportunities than are large firms.

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Definitions:

Retained Earnings

Retained earnings are the cumulative amount of net income left over for a company after it has paid out dividends to its shareholders, reinvested in the business, or used to pay off debt.

Treasury Stock

Shares that were issued and later reacquired by the corporation, reducing the number of outstanding shares in the market.

Common Stock

Shares of ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.