In Which of the Following Life-Cycle Stages of Small Businesses

question 30

Multiple Choice

In which of the following life-cycle stages of small businesses does an entrepreneur face competitive challenges in a dynamic environment?

• A) The birth stage
• B) The breakthrough stage
• C) The maturity stage
• D) The death stage

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Definitions:

Gains from Trade

Gains from trade refer to the increase in consumer and producer surplus that occurs when countries specialize in the production of goods and services in which they have a comparative advantage and then trade with others.

Deadweight Losses

Losses in social welfare, usually measured in terms of lost revenue or surplus, resulting from inefficiencies in a market or the economy.

Taxes

Necessary financial levies or assorted kinds of dues imposed on an individual by a governmental structure to facilitate government finance and numerous public investments.

Deadweight Loss

A decrease in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium state.