By efficiently managing external relations,small businesses typically aim at creating _____.
A) economies of scale
B) social capital
C) opportunity costs
D) skills inventory

Question

Quizplus · Accepted Answer

Small businesses aim to create social capital through efficient management of external relations. Social capital refers to the value that is created by social networks and relationships that help in achieving mutual benefits. By building strong relationships with external stakeholders, small businesses can access resources, knowledge, and opportunities that are critical for their success. This also helps in reducing transaction costs and risks associated with business operations. Therefore, creating social capital is crucial for small businesses to enhance their competitiveness in the market. A, C, and D are not relevant to the context.

By Efficiently Managing External Relations,small Businesses Typically Aim at Creating