Which of the Following Statements Explains Why Small Businesses Are

question 46

Multiple Choice

Which of the following statements explains why small businesses are generally more effective than large companies in specialty retailing?

• A) Large companies generally lack the specialists that are needed to make a retail store profitable.
• B) Specialty retail stores are generally located in small towns where large organizations tend not to compete.
• C) Specialty retailing requires a different organizational structure than is usually found in large companies.
• D) Innovative people leave the bureaucracy of big business to start their own firms.
• E) Specialty retailing relies on customization,which is not cost effective for large companies.

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Definitions:

Adjusting Entries

Journal entries made in preparation for financial statements to allocate income and expenses to the period in which they actually occurred.

Balance Sheet Account

An account found on the balance sheet which can include assets, liabilities, and equity accounts.

Income Statement Account

An account found in the income statement that records revenues, expenses, gains, and losses.

Income Statement Columns

The segments in an income statement that organize revenues, expenses, and profitability metrics to provide insights into a company's financial performance over a specific period.