Which of the Following Is True of a Small Business

question 47

Multiple Choice

Which of the following is true of a small business?

• A) Its preferred funding source is other people's money.
• B) It sells more when it is facing bankruptcy.
• C) It considers sales as more important than marketing.
• D) It focuses more on effectiveness than on efficiency.

---

Definitions:

Fixed Cost

Expenses that do not vary with the level of production or sales, such as rent, salaries, or insurance costs.

Lawn-mowing

The process of cutting the grass in a garden or yard to maintain a neat and orderly appearance.

Perfectly Competitive

A market structure characterized by many buyers and sellers, where no single entity has a significant impact on prices.

Short Run

A period in which at least one factor of production is fixed, limiting the ability to adjust production rapidly.