What Is an Important Difference Between Small and Large Businesses

question 88

Multiple Choice

What is an important difference between small and large businesses in terms of alignment between organization and people strategies?

• A) Large businesses are constrained by existing internal processes; small businesses have less bureaucracy and can change faster.
• B) Large businesses have more strategy to align; small businesses keep it simple.
• C) Large businesses have more competitors; small businesses can keep a closer eye on fewer rivals.
• D) Large businesses have more overhead and constraints; small businesses are leaner and meaner.

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Definitions:

Manufacturing Firm

A company engaged in the industrial process of producing goods through physical, chemical, or mechanical transformation of materials or components.

Retail Chain

A network of stores operated by the same company, offering similar or related products or services to consumers.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or investments.

Cash Flows

The movement of money into and out of a company from operational, investment, and financing activities.