Which of the Following Statements Comparing Small Businesses to Large

question 109

Multiple Choice

Which of the following statements comparing small businesses to large businesses is FALSE?

• A) More new jobs are created by small than by large businesses.
• B) Large businesses show better financial performance than small businesses.
• C) Small businesses represent the majority of new businesses started each year.
• D) Small businesses can typically produce and deliver specialty products more efficiently than large businesses.
• E) Small businesses outnumber large businesses by nearly 100 to 1.

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Definitions:

Accounting Period

The span of time at the end of which a company calculates its financial performance, typically a quarter or year.

Journalized

The act of recording a transaction in an accounting journal, documenting the financial activities of a business.

Retained Earnings

Represents the portion of net income that is retained by the company rather than being distributed to its owners or shareholders.

Utilities Expense

An expense incurred by a business for basic utilities, such as electricity, gas, and water, which are necessary for operations.