Which of the Following Statement Is Not True Regarding the Day-To-Day

question 49

Multiple Choice

Which of the following statement is not true regarding the day-to-day challenges of growing a firm?

• A) As a firm grows, it requires a decreasing amount of cash to service its customers.
• B) If firm growth comes at the expense of a competitor's market share, price competition can set in.
• C) Most businesses, regardless of their industry, need capital from time to time to invest in growth-enabling projects.
• D) Although most businesses are started fairly inexpensively, the need for capital is typically the most prevalent in the early growth and continuous stages of the organizational life cycle.
• E) One of the most difficult challenges that businesses encounter as they grow is maintaining high levels of quality and customer service.

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Definitions:

Strategy Development

Strategy development involves formulating plans and policies to achieve major business goals and objectives, taking into consideration the resources available and the external environment.

Resource-Based View

A framework for understanding competitive advantage that emphasizes the strategic value of a firm's resources and capabilities.

Competitive Advantages

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand, and customer service.

Sustainable Competitive Advantage

A long-term, defendable position a company holds over competitors, often through unique resources, capabilities, or technologies.