Stage 3 in the Growth of a Business Is Characterized

question 12

Multiple Choice

Stage 3 in the growth of a business is characterized by

• A)a one-person operation.
• B)hands-off management practices.
• C)multi-layered organization.
• D)the entrepreneur as a player-coach.

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Definitions:

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense.

Effectiveness

The degree to which objectives are achieved and the extent to which targeted problems are solved.

Liquidity

A measure of the ease with which an asset can be converted into cash without significantly affecting its value.

Solvency

The ability of a company or individual to meet long-term financial obligations, indicating they possess more assets than liabilities over the long term.