Enterprise and Entrepreneurs (lesson 6)

What proportion of UK businesses are SMEs?

• 92.9%

• 10.9%

• 99.9%

• 95.9%

Which is correct about SMEs?

• SMEs are those business that have less than £250m turnover and less than 50 employees

• Small businesses have less than £50m turnover whereas medium business have less than £250m turnover. Both have employees which are less than 250.

• SMEs are those that have less than £100m turnover and less than 250 employees

• Small businesses have less than 50 employees whereas medium business have less than 250 employees. Both have turnover less than £50m.

Which is NOT a limitation of the impact SME's have on the UK economy?

• SMEs find it harder to compete due to not achieving the economies of scale of larger businesses and are therefore more likely to fail

• SMEs don't pay taxation or employ people and so are of limited use to governments.

• SMEs have fewer assets and are therefore likely to find raising finance more difficult to grow and develop new products for customers

• SMEs are more likely to fail in a recession or suffer hardship.

Which is NOT a role of an entrepreneur?

• Creative and innovative

• Formulate a business plan

• Undertake market research and make decisions about pricing

• Organise, plan and manage resources

These theorists believed that existing leadership theory focused too much on style and not actually what a leader does. They therefore devised a checklist for diagnosing and responding to workforce performance issues. They believed that a leader could adopt any style, but that effective leadership could arise from training on responses to specific situations. 

• Maslow and Mayo

• Porter and Lawler

• Wright and Taylor

• Fiedler and Drucker

Which is NOT a motive for being an entrepreneur?

• Social Enterprise

• To avoid Opportunity Cost

• To be own boss

• To have flexibility for lifestyle choices

Which is NOT an Opportunity Cost of starting a business?

• The £10,000 of savings invested

• The salary and security of being employed

• Time lost with family and friends

• A £10,000 holiday using all savings

Which is NOT a benefit of becoming a Public Limited Company?

• Having a higher status and reputation

• Being able to sell shares to the public

• Getting public sector funding

• Having finances and affairs under greater public scrutiny

Which is NOT a business within the secondary sector?

• Jaguar Land Rover

• British Petroleum

• Boots opticians

• Worcester Bosch

Two stakeholders of a business are in conflict over a decision at Thames water to invest in new infrastructure to reduce the pumping of sewage into rivers at times of high rainfall. Which two stakeholders are most likely to be in conflict.

• Shareholders and local community

• Employees and Directors

• Customers and Employees

• Local community and customers