There Are Several Reasons Entrepreneurs Resist Implementing a More Deliberate

question 13

Multiple Choice

There are several reasons entrepreneurs resist implementing a more deliberate organization structure. Which of the following is not one of the reasons?

• A) fear of sharing decision-making
• B) fear of sharing operational responsibilities
• C) fear of implementing a structure that is too rigid for their personality and business
• D) fear that the business will fail because they are not as committed as the entrepreneur is
• E) fear that their competitors will keep their structures smaller and have less overhead costs

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Definitions:

Curvilinear Costs

Costs that change with the level of output but at a non-constant rate, displaying a curved relationship between cost and output.

Nonconstant Rate

Refers to a rate that changes over time, as opposed to a constant or fixed rate which remains the same.

Mixed Cost

Expenses that contain both fixed and variable components, changing in total with the level of activity but not proportionately.

Cost-Volume-Profit Analysis

An accounting method used to determine the effects on company profits of different levels of sales volume and costs.