The Advantages of a Small Organization Include

question 22

Multiple Choice

The advantages of a small organization include

• A)scale economies.
• B)lower proportional operating costs.
• C)greater purchasing power.
• D)easier access to capital.
• E)greater employee involvement.

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Definitions:

Self-Imposed Budget

A budget created with the input and agreement of lower-level employees, aiming to increase accountability and performance.

Top Management

The highest level of management within an organization, responsible for setting strategic goals and ensuring their realization.

Adverse Behavioural Responses

Negative reactions or changes in behavior resulting from policies, actions, or conditions, often unintended consequences.

Production Budget

A financial plan that outlines the cost of producing the products a company plans to sell, including direct materials, labor, and overhead.