Which of the Following Is an Advantage of a Small

question 117

Multiple Choice

Which of the following is an advantage of a small organization?

• A)Scale economies
• B)Lower operating costs
• C)Greater purchasing power
• D)Easier access to capital
• E)Greater employee involvement

Comprehend the factors that create barriers to entry in an industry.

Identify legal and illegal competitive behaviors within different market structures.

Analyze the impact of market share and concentration ratios on the competitive environment.

Recognize the conditions under which collusion and cartels are formed and their effects on the market.

---

Definitions:

Long-Term Use

Assets or products intended to be used over an extended period, typically exceeding one year.

Return On Assets

A profitability ratio that measures how effectively a company uses its assets to generate profit, typically expressed as a percentage.

Evaluating Management

The process of assessing the effectiveness of a company's management team in achieving business goals and strategies.

Forecasting Profits

The process of estimating the future financial performance of a company, specifically regarding its profits.