Scenario 14-2. Larry's pasta shop has been growing continuously. The shop is now three times the size it was when Larry first opened it 10 years ago. There are now 26 employees working in three different shops. Larry has finally controlled his costs and has made his overall system of doing business more efficient. His two brothers, Lon and Lyn, manage the other two shops. The brothers have a partnership agreement.
-In Scenario 14-2, when Larry hired his first employees, he went through the transition to enter the ______ stage of growth.

Question

Quizplus · Accepted Answer

When Larry hired his first employees, it signifies the transition from the "existence" stage, where the business is being established and the owner is the primary worker, to the "survival" stage. In this stage, the business has proven that it is a workable business entity and focuses on establishing a stable customer base and sufficient cash flow to cover expenses, which includes hiring employees to support operations.