Question

All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms are that they ____ (A) have more loyal and diverse workforces. (B) can launch competitive actions more quickly. (C) are more likely to have organizational slack. (D) can wait for larger firms to make mistakes in introducing innovative products.

Answer 1

Answer: All competitive advantages do not accrue to large-sized firms. A major advantage of smaller firms are that they "(B) can launch competitive actions more quickly."

Explanation: Smaller companies can launch competitive actions faster because being smaller, communication is much faster, and decision-making involves fewer interested people who may differ in opinions to direct competitive strategies.