Why can a small business owner typically make decisions more quickly than a large business?

• A. Large businesses are required by law to delay decisions for regulatory review.
• B. Small businesses do not need to consider market conditions when making decisions.
• C. Small business owners always have more experience than managers in large businesses.
• D. Small businesses have fewer layers of management, allowing for faster decision-making.

Answer: (D)

Verified step by step guidance

1. Understand the organizational structure differences between small and large businesses. Small businesses typically have fewer layers of management, meaning decisions can be made by fewer people or even a single owner.
2. Recognize that in large businesses, decisions often require approval from multiple departments or levels of management, which can slow down the process.
3. Consider the role of bureaucracy and formal procedures in large firms, which are designed to ensure compliance and coordination but can delay decision-making.
4. Note that small business owners usually have direct control and immediate access to information, enabling them to respond quickly to changes or opportunities.
5. Conclude that the fewer hierarchical layers and simpler communication channels in small businesses facilitate faster decision-making compared to large businesses.