According to SBA Guidelines, a Manufacturing Firm with 1,000 Employees

question 168

Multiple Choice

According to SBA guidelines, a manufacturing firm with 1,000 employees

• A) would be classified as a large firm in the industrial sector.
• B) may be classified as a small business depending upon the size of others in the same industry.
• C) is too small to achieve the efficiencies of large-scale production.
• D) is classified as an S corporation.

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Definitions:

Loss Aversion Technique

A psychological strategy used in various fields, including investing and marketing, that leverages the individuals’ tendency to prefer avoiding losses to acquiring equivalent gains.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Affect Heuristic

A mental shortcut used in decision making that involves relying on current emotions to evaluate the desirability and risks of different options.

Real Buying Power

The actual amount of goods and services that can be purchased with a unit of currency, taking into account inflation and other factors affecting price levels.