Small Businesses Differ from High-Growth Ventures in That in Small

question 54

Multiple Choice

Small businesses differ from high-growth ventures in that in small businesses:

• A) the focus is on effectiveness rather than efficiency.
• B) the preferred source of funding is the owner's own money rather than other people's money.
• C) the delegation of responsibilities is easy and necessary rather than difficult.
• D) the metastrategy is for novelty rather than imitation.

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Definitions:

Unlimited Liability

A legal structure where business owners are personally responsible for all of the company's debts and liabilities.

Partnership Interests

Shares of ownership in a partnership, entitling the partners to a portion of the partnership's profits and losses.

Depository Institution

A financial institution that accepts deposits from individuals and provides loan services.

Investment Bank

A financial institution that provides advisory services, financing, and investment services to individuals, corporations, and governments.