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Which of the following is an advantage of small businesses over larger firms?

A. Unlike larger firms, small businesses can quickly make and execute business decisions.

B. Unlike larger firms, small businesses have access to a diverse and large workforce.

C. Unlike larger firms, small businesses are not required to pay any taxes.

D. Small businesses are better equipped than larger businesses to cope with growth.

E. Small businesses have better access to highly trained and competent staff than larger firms.

1 Answer

2 votes

Final answer:

Small businesses have the advantage of being able to make and execute decisions quickly compared to larger firms, primarily due to their simplified organizational structures and less bureaucratic decision-making processes.

Step-by-step explanation:

Among the advantages of small businesses over larger firms, option A is correct. Small businesses can quickly make and execute business decisions due to their size and streamlined decision-making processes. In contrast, large firms often have more complex hierarchies and procedures that can slow down their response to market changes.

Option B is incorrect because small businesses typically have access to a more limited workforce compared to the vast pool available to large firms. Option C is also incorrect because all businesses, regardless of size, are required to pay taxes. Option D is not typically seen as an advantage for small businesses, as they may find rapid growth challenging to manage. Lastly, option E is not generally accurate, as larger firms often have resources to attract highly trained and competent staff.

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