BUSINESS SIZE

What are some criteria used to measure business size?

• Number of employees, Sales turnover, Market capitalisation

• Number of employees, Market share, Value added

• Sales turnover, Capital employed, Market share

• Market capitalisation, Market share, Value of shares in stock market

What is the significance of small and micro-businesses?

• All of the above

• Create competition for larger firms, Supply specialist goods and services, Enjoy lower average costs

• Reduce exploitation, Provide variety in the market, Pass on benefits to consumers

• Create jobs, Run by dynamic entrepreneurs, Offer personal service to customers

What are some advantages of small businesses?

• Can afford specialist professional managers, Benefit from economies of scale, Have access to several sources of finance

• Can be managed and controlled by the owner(s), Adapt quickly to changing customer needs, Offer personal service to customers

• May be diversified, Lower costs as more is produced, Competitive in the market

• None of the above

What are some disadvantages of large businesses?

• Can be managed easily, Benefit from economies of scale, Set low prices compared to competitors

• Afford research and development into new products, Diversified in several markets and products, Spread risks

• None of the above

• Difficult to manage especially if geographically spread, Suffer from diseconomies of scale, Slow decision making and poor communication

What is one of the main objectives of any business growth?

• All of the above

• Economies of scale, Market share, Brands

• Increase reputation, Lower costs as more is produced, Spread risk by diversifying

• Increase profit, Become market leader, Control suppliers

What is internal growth in business?

• Acquiring companies that supply raw materials or services

• Acquiring companies in the same industry but at an earlier stage of production

• Expansion by means of opening new branches, shops, factories

• Expansion by means of mergers, Takeovers, Buyouts

What is external growth in business?

• Expansion by means of opening new branches, shops, factories

• Expansion through integration such as mergers, takeovers, buyouts

• Acquiring companies that supply raw materials or services

• Acquiring companies in the same industry but at an earlier stage of production

What is horizontal integration in business?

• Acquiring a company providing an unrelated product or service

• Acquiring a company that does related business on a similar supply chain level

• Buying a company in the same industry but at an earlier stage of production

• Taking over a company in the same industry but at a later stage of production

What is vertical integration in business?

• Taking over a company in the same industry but at a later stage of production

• Acquiring a company that does related business on a similar supply chain level

• Acquiring a company providing an unrelated product or service

• Buying a company in the same industry but at an earlier stage of production

What is forward integration in business?

• Buying a company in the same industry but at an earlier stage of production

• Taking over a company in the same industry but at a later stage of production

• Acquiring a company providing an unrelated product or service

• Acquiring a company that does related business on a similar supply chain level