Which of the following statements is true regarding success stage of the small firm life cycle?

Question

Quizplus · Accepted Answer

During the success stage of the small firm life cycle, firms develop the information, skills, and routines necessary to grow the business's profits. This is a time of expansion and growth, and successful firms may even begin to consider expanding into new markets or developing new products to maintain their success.

B is incorrect because profits can be taken in multiple forms, such as reinvesting in the business or taking payment in the form of goods or services.

C is incorrect because the success stage can last for a significant period of time, depending on the business and its circumstances.

D is incorrect because the liabilities of newness are typically associated with the start-up stage, not the success stage.

Which of the Following Statements Is True Regarding Success Stage