Which of the Following Statements Is True About Small Companies

question 73

Multiple Choice

Which of the following statements is true about small companies?

• A) Small companies do not devote substantial space on their websites to building credibility.
• B) Small companies provide testimonials from other clients.
• C) Small companies keep the credentials and experience of the employees secret.
• D) Small companies hide affiliations with well-known organizations.
• E) Small companies avoid efforts to build credibility since they are so costly and ineffective.

---

Definitions:

Network Externalities

The effect that one user of a good or service has on the value of that product to other people, often positive, as the number of users increases.

Product Variety

The variety of products or services a company provides or that are accessible in a marketplace.

Cost Diseconomies

Situations where costs per unit increase as a firm's operation scales up, often due to inefficiencies or increased complexity.

Celebrity Endorsement

The practice of using a famous person's support or approval to promote a product or service, leveraging their influence to reach potential customers.