How do large corporations benefit from the presence of small businesses?

A. by enjoying a monopoly in the market

B. by making huge investments in small businesses

C. by taking out loans from small businesses

D. by outsourcing certain processes to small businesses

I would choose D. By outsourcing certain processes to small businesses

The correct answer would be D, By outsourcing certain processes to small businesses.

Explanation:

Large corporations usually benefit from the presence of small businesses in the market by outsourcing their certain processes to small businesses. In this way, they can get benefit by hiring outsourced staff at a cheaper rate and the small businesses can get benefit by having their manpower on work. Outsourcing is process through which companies hire employees from other companies on rental basis. Those employees do not become the permanent employees of the company which is hiring them, rather they are contractual employees without having the benefits of permanent employees. For example, a large telecom company may outsource employees for its customer service department from small business firms who provide the facility of outsourcing their employees.