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Small Business Management 6th Edition by Timothy Hatten
Edition 6ISBN: 978-1285866383Small Business Management 6th Edition by Timothy Hatten
Edition 6ISBN: 978-1285866383 Exercise 2
Large businesses depend on small businesses. Why?
Explanation
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Small business:
Small business can be defined as a unit where business activities are measured to be small in size, if it is owned, financed and operated independently. Generally, small businesses consist of less than 100 employees depending upon the service rendered.
Small businesses are common in most countries which are relatively dependant on the economic system of operation.
Statement:
"Large businesses depend on small businesses."
Justification:
There is a situation where a large business is dependent on the small business. For instance, Company J.D which produces farm equipment relies on hundreds of small scale vendors to produce quality components. This company has an extensive network of over 3,000 independent dealers comprising of small businesses that provide sales and services for the equipment manufactured.
The relationship with small businesses enables Company J.D to be recognized as the largest farm equipment manufacturer in the world. By using the service of small businesses, it also creates an economic opportunity for many individual entrepreneurs.
Small business can be defined as a unit where business activities are measured to be small in size, if it is owned, financed and operated independently. Generally, small businesses consist of less than 100 employees depending upon the service rendered.
Small businesses are common in most countries which are relatively dependant on the economic system of operation.
Statement:
"Large businesses depend on small businesses."
Justification:
There is a situation where a large business is dependent on the small business. For instance, Company J.D which produces farm equipment relies on hundreds of small scale vendors to produce quality components. This company has an extensive network of over 3,000 independent dealers comprising of small businesses that provide sales and services for the equipment manufactured.
The relationship with small businesses enables Company J.D to be recognized as the largest farm equipment manufacturer in the world. By using the service of small businesses, it also creates an economic opportunity for many individual entrepreneurs.
Small Business Management 6th Edition by Timothy Hatten
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