On Average Each Year, About 7 Percent of All Firms

question 35

Multiple Choice

On average each year, about 7 percent of all firms in the United States are new, and 1 percent go out of business.According to the text, which of the following is not true?

• A)Luck may play a role in a firm's performance.
• B)A focus on quality may have a role in a firm's performance.
• C)Being a first mover is never a reason for failure.
• D)Size may be an important factor of success.
• E)A firm that globalizes may find that it fails.

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Definitions:

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time.

Velocity of Money

The rate at which money circulates in the economy, calculated as the ratio of nominal GDP to the money supply, indicating the efficiency with which money is used to facilitate transactions.

Store of Value

An asset that can be saved, retrieved, and exchanged in the future without losing value.

Medium of Exchange

Any item that is widely accepted in exchange for goods and services, thus facilitating trade by eliminating the need for a double coincidence of wants.