What is the meaning behind the statement, "Too big to fail"?
A) Large organizations that dominate the industry can make management mistakes but still survive.
B) Small to medium organizations are not as innovative as large companies and hence not as successful.
C) Large companies are more customer responsive than small companies.
D) History has shown that large companies rarely fail.

Question

Quizplus · Accepted Answer

A) Many people believe that large companies that dominate their industries don't require outstanding management. They are, in fact, often described as "too big to fail." Their competitive advantages such as market share, economies of scale, prime locations, patents, or name recognition are assumed to create enough protection so that even mediocre management can generate substantial profits.

What Is the Meaning Behind the Statement, "Too Big to Fail