3.2.4 Reasons For Staying Small Flashcards
What is one reason for a business to stay small?
To maintain a personal touch with customers
True or False: Staying small can allow a business to be more flexible and responsive to changes in the market.
True
Fill in the blank: Staying small can help a business to avoid ________.
Bureaucracy
What is a benefit of staying small in terms of decision-making?
Faster decision-making process
What is one challenge that small businesses may face due to their size?
Limited access to resources
What is one reason why some businesses choose to stay small rather than expand?
To maintain quality control
What is a potential disadvantage of staying small in terms of economies of scale?
Higher production costs
True or False: Staying small can lead to limited growth opportunities for a business.
True
Fill in the blank: Staying small can allow a business to focus on ________.
Niche markets
What is one reason why a business might choose to stay small in order to compete effectively?
To be more agile
What is one potential drawback of staying small in terms of brand recognition?
Less brand visibility
True or False: Staying small can lead to lower overhead costs for a business.
True
Fill in the blank: Staying small can result in a more ________ work environment.
Collaborative
What is one reason why a business may choose to stay small in order to maintain control?
To retain ownership
What is a potential benefit of staying small in terms of customer relationships?
Stronger customer loyalty
True or False: Staying small can make it easier for a business to adapt to changing customer preferences.
True
Fill in the blank: Staying small can lead to a more ________ business model.
Sustainable
What is one reason why a business might choose to stay small in order to foster innovation?
To encourage creativity
What is one potential drawback of staying small in terms of market share?
Limited market reach
True or False: Staying small can result in higher profit margins for a business.
True
Fill in the blank: Staying small can lead to a ________ organizational structure.
Flat
What is one reason why a business may choose to stay small in order to reduce risk?
To minimize financial exposure
What is a potential benefit of staying small in terms of employee morale?
Higher job satisfaction
True or False: Staying small can result in greater brand differentiation for a business.
True
