The Competing Argument Says Small Is Beautiful Because the Crucial

question 45

Multiple Choice

The competing argument says small is beautiful because the crucial requirements for success in a global economy are:

• A)longevity and stability in an unstable environment.
• B)huge resources and economies of scale.
• C)responsiveness and flexibility in fast-changing markets.
• D)labor force and productivity.

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Definitions:

Variable Costs

Expenses that vary directly with the production output or activity levels.

Break-Even Sales

The amount of revenue needed to cover total costs, at which point a business neither makes a profit nor incurs a loss.

Margin of Safety

Represents the difference between actual or planned sales and the break-even sales, indicating the amount by which sales can drop before the business incurs a loss.

Contribution Margin Ratio

A financial metric that measures the proportion of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.