All Competitive Advantages Do Not Accrue to Large-Sized Firms

question 45

Multiple Choice

All competitive advantages do not accrue to large-sized firms.A major advantage of smaller firms is that they:

• A) are more likely to have organizational slack.
• B) can launch competitive actions more quickly.
• C) have more loyal and diverse workforces.
• D) can wait for larger firms to make mistakes in introducing innovative products.

---

Definitions:

Distributing Cash

Refers to the process of delivering or allocating cash holdings to various parties, such as dividends to shareholders or payments to creditors.

Issuing Debt

Refers to the process by which a corporation or government raises capital by selling bonds, bills, or notes to investors.

Purchase of Merchandise

The acquisition of goods for resale, typically recorded as an inventory asset until the goods are sold.