According to the Text, Which One of the Following Is

question 26

Multiple Choice

According to the text, which one of the following is NOT one of the reasons why innovations seem to occur more often in small firms rather than in large, established corporations?

• A)An entrepreneur in a small firm is more willing to accept greater risk than would a larger firm.
• B)Small firms are completely ignorant of risk management.
• C)The greater the assets involved and the longer they are tied up, the more likely top management in large firms is to demand a high probability of success.
• D)Companies operating in global industries must deal with a greater amount of risk than firms operating only in one country.
• E)If the corporation's stock is widely held as in the case of large firms and experiences stock price declines due to some external assessment, it places the firm in jeopardy of being acquired.

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Definitions:

Condition Precedent

A condition in a contract that must be met before a party's promise becomes absolute.

Avoidable

Capable of being prevented or circumvented through careful action or strategic planning.

Collateral Agreement

An agreement that has its own consideration, but supports another agreement.

Breach of the Contract

An occurrence when one or more parties involved in a contract fail to fulfill their legal obligations as stipulated within the contract.