10.1 & 10.2 Review

Small to medium enterprises (SMEs) are the ___________ of the Australian economy.

Which of the following is NOT a quantitative or a qualitative measure to determine the size of a business?

• The number of employees

• The location of the business

• Market share

• The legal structure

Which of the following statements are correct?

• Many SME owners want to become larger businesses

• An SME is a business with fewer than 200 employees

• During a boom time in the economy, the number of SMEs decreases rapidly.

• There is no single universally accepted definition of an SME

Match the following to their correct answers.

• Medium

• 200 or more employees

• Large

• Between 5 and 19 employees

• Small

• Fewer than 5 employees (including the owner)

• Micro

• Between 20 and 199 employees

Drag and drop the common characteristics of an SME (a)   ​ ​ (b)   ​ ​ (c)   ​

• local markets
• Closely controlled by owner/operator
• Reliant on external support services
• Independently operated
• Dependently owned
• Owner not responsible for decision-making

Which of the following are the reasons why many SME owners want to stay small?

• Because they can offer personalised customer service

• To limit their profit potential

• Because they prefer less control over their business operations

• To avoid the pressures and difficulties often experienced by larger businesses

It is difficult to provide an accurate count of the number of SMEs in Australia.

• True

• False

List two reasons why it is difficult to provide an accurate count of the number of SMEs in Australia.

SMEs earn less profits and pay less taxes than do large businesses.

• True

• False

Write a role of an SME.