Business Context

What is an MNC?

• Mobile network code

• A multinational corporation

• A multilingual corporation

• Multifunctional national corporation

Select the best definition of 'economies of scale'

• As an organisation reduces in size, it has the opportunity to become less efficient.

• As an organisation grows in size, it has the opportunity to become less efficient.

• As an organisation grows in size, it has the opportunity to become more efficient.

• As an organisation reduces in size, it has the opportunity to become more efficient.

Select all the ways in which the size of a business organisation can be measured.

• Number of employees

• Profit levels

• Number of fire doors installed

• Sales revenue

Business organisations range in size. A micro business has how many employees?

• 1-9 employees

• 10-49 employees

• 50-249 employees

• 250+ employees

Business organisations range in size. A small business has how many employees?

• 1-9 employees

• 10-49 employees

• 50-249 employees

• 250+ employees

Business organisations range in size. A medium business has how many employees?

• 1-9 employees

• 10-49 employees

• 50-249 employees

• 250+ employees

Business organisations range in size. A large business has how many employees?

• 1-9 employees

• 10-49 employees

• 50-249 employees

• 250+ employees

How is profit calculated?

• Sales revenue - Total costs

• Sales revenue - Variable costs

• Sales revenue - Fixed costs

• Sales revenue - Contribution

(Sales of your business)/(Total sales in the market) × 100

What does the above formula calculate?

• Sales share

• Market share

• Market size

True or false?

Having a larger market share means better ‘economies of scale’.

• True

• False