Compared to big businesses, small businesses contribute to the overall

QUESTION

Compared to big businesses, small businesses contribute to the overall economic vitality of the United States in all of the following ways EXCEPT which?

A) promote more innovation
B) provide more first jobs
C) enjoy more economies of scale
D) employ more workers
E) generate more new jobs

ANSWER

Answer: C
Explanation: C) Small business are twice as innovative per employee as larger firms, provide the first job for most entrants to the labor force, employ over half of U.S. workers, and generated 64 percent of net new jobs annually over the 15 years ending in 2008. Compared to big businesses, however, small businesses enjoy unfavorable economies of scale.