Which of the following statement about the size of firms in a country's economy is most accurate?
A) The majority of firms remain small and peripheral.
B) Most small firms grow to become very large or they go out of business.
C) There is an even split between small and large firms.
D) Small firms are not profitable.
E) Large firms dominate the industrial base.

Question

Quizplus · Accepted Answer

In most economies, the majority of firms are small and peripheral. While some may grow to become large, the majority of small firms tend to remain small or may even go out of business due to competition and other factors. Large firms do exist and play a significant role in the economy, but they do not dominate the industrial base in most countries. Small firms can also be profitable, depending on the industry and other factors. Therefore, option A is the most accurate statement.

Which of the Following Statement About the Size of Firms