Which of the following is a difference between large organizations and entrepreneurial businesses?

• A. Large organizations typically have more formalized structures and procedures than entrepreneurial businesses.
• B. Entrepreneurial businesses usually have more employees than large organizations.
• C. Entrepreneurial businesses generally have less flexibility in decision-making compared to large organizations.
• D. Large organizations are less likely to face government regulations than entrepreneurial businesses.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the characteristics of large organizations, which typically include formalized structures, established procedures, and hierarchical decision-making processes.
2. Step 2: Recognize the traits of entrepreneurial businesses, which are usually smaller, more flexible, and have less formalization in their operations and decision-making.
3. Step 3: Compare the number of employees in entrepreneurial businesses versus large organizations, noting that large organizations generally have more employees.
4. Step 4: Consider the flexibility in decision-making, where entrepreneurial businesses tend to be more flexible due to fewer layers of management.
5. Step 5: Evaluate the likelihood of facing government regulations, understanding that large organizations often face more regulations due to their size and market impact.