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:

Money Market Accounts

Financial accounts that typically offer higher interest rates than savings accounts, while providing the account holder with limited check-writing ability.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Petty Cash

A small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.

Account Type

A classification that dictates the nature and purpose of an account, such as assets, liabilities, equity, revenue, or expenses.