What Is an Important Difference Between Small and Large Businesses

question 26

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 business 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:

Supplies

Items that are used in the day-to-day operations of a business, not directly part of the manufactured product but necessary for its production.

Labor Rate Variance

The difference between the actual labor costs incurred and the standard labor costs expected for the work performed.

Labor Efficiency Variance

A metric used to measure the difference between the actual labor hours worked and the standard labor hours allowed for the production achieved.

Labor Standards

Predetermined measures of the amount of labor time necessary for the completion of a task or project.