The questions in this group are based on the content of a passage. After reading the passage, choose the best answer to each question. Answer all questions follow- ing the passage on the basis of what is stated or implied in the passage.
Until recently corporate ideology in the United States has held that bigger is better. This traditional view of the primacy of big, centralized companies is now being challenged as some of the giants of American business are being out formed by a new generation of smaller, streamlined business. If it was the industrial revolutions that spawned the area of massive industrialize companies, then perhaps it is the information revolutions of the 1990s that is spawning the area of the small company.
For most of this century, big companies dominated an American business scene that that seemed to thrive on its own Grandness of scale. The expansion westward, the growth of railroad and steel industries, an almost limitless supply of cheap raw materials, plus a populations boom That provided an ever increasing demand for new products (although not cheap source of labor) all coincided to encourage the growth of large companies.
But rapid developments in the market place have begun to change the accepted rules of business and have under-scored the need for fast reaction times. Small companies without huge overhead and inventory, can respond quickly to a technologically advanced age in which new products and technologies can become outmoded within a year of their being brought to market.
Of course, successful emerging small companies face a potential dilemma in that their very success will tend to turn them into copies of the large corporate dinosaurs they are now sup- planting. To avoid this trap, small companies may look to the example of several CEOs of large corporations who have broken down their sprawling organizations into small semi-independent divisions capable of making their way into the twenty first century.