Why Might a Large Firm Actually Be at an Advantage

question 19

Multiple Choice

Why might a large firm actually be at an advantage over a smaller firm with respect to labor?

• A)Large generally pay a compensating differential to attract workers
• B)Worker turnover is generally lower
• C)Large firms enjoy better scale economies when negotiating with health insurance companies for health benefits
• D)Large firms are generally less attractive to qualified,upward mobile workers
• E)Large firms often have to draw workers from a greater distance to fill their ranks

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Definitions:

Michael Korda

An author and editor, known for his works on historical biographies as well as his leadership and management insights.

Utilitarian Outcome

A result or consequence of an action that is judged solely based on its ability to provide the greatest good for the greatest number of people.

Ethical

Pertaining to or dealing with morals or the principles of morality; conforming to accepted standards of social or professional behavior.

Power-oriented Characteristics

Traits or behaviors displayed by individuals that focus on gaining or maintaining influence or control over others.