Session 5

Why is it important for a business to match its scale with its level of operations?

• To minimise competition

• To maximise profit

• To reduce taxes

• To limit employee turnover

What does "capital employed" in a business include?

• Number of employees

• Retained profit + Share capital + Long-term liabilities

• Market share percentage

• Total sales revenue

Which stakeholder group might be interested in a company's profit levels for reasons such as job security and pay rises?

• Government

• Investors

• Employees

• Customers

How is market capitalization calculated?

• Total sales revenue × Number of employees

• Current share price × Total number of shares sold to the general public

• Profit margin × Total revenue

• Number of products in the portfolio × Market share percentage

What is profitability in business terms?

• The total revenue generated

• The percentage profit margin

• The market share percentage

• The number of employees

What is one limitation of using share prices to measure a company's size?

• Share prices are stable and unchanging

• Share prices are based on perceptions and can change daily

• Share prices are determined by the number of employees

• Share prices only apply to small businesses

What does "work specialisation" refer to in the context of business size affecting organisations?

• The number of products in the portfolio

• The degree to which tasks are divided into separate jobs

• The market capitalization

• The number of countries the business operates in

What is the primary purpose of measuring an organization's size?

• To evaluate social responsibilities

• To determine taxes to charge

• To match the scale of the business with its level of operations

• To limit customer base

Why might a government need to know the size of a business?

• To provide job training

• To charge appropriate taxes and provide support

• To limit enterprise growth

• To reduce employee benefits

What might be a specific measure of business size for sports teams?

• Market capitalisation

• Size of arenas and stadiums

• Number of products in the portfolio

• Employee count