For a Business to Be Successful in the Early Growth

question 21

Multiple Choice

For a business to be successful in the early growth stage of the organizational life cycle, two important things must happen:

• A) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role and increased formalization must take place
• B) a decision must be made whether the owner-manager and the current management team is capable of taking the business further and the organization must start laying the groundwork for future growth
• C) increased formalization must take place and the business must achieve price stability
• D) a decision must be made whether the owner-manager or the current management team is capable of taking the business further and business partnerships must be established
• E) the founder or owner of the business must start transitioning from his or her role as the hands-on supervisor to a more managerial role and the business must be cash flow positive

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Definitions:

Persuasive Approach

A method or strategy designed to convince or influence someone to adopt a certain viewpoint or to take a specific action.

Formal Complaint

A written grievance lodged officially by an individual or group regarding a particular matter or misconduct.

Settlement

An agreement or resolution between parties in a dispute, often involving the payment of compensation.

Emotional Reaction

The affective response of an individual to a particular stimulus or situation, which can influence behavior and decision-making.