AS Level Chapter 3 Review

1. Which of the following is NOT a common way to measure business size?

• Number of employees
• Market share
• Number of suppliers
• Revenue

2. A business is considered small if it has fewer than how many employees?

• 50

• 10

• 20

• 30

3. What is the most common form of business growth?

• Internal growth
• External growth
• Mergers
• Takeovers

4. Inorganic growth in a business occurs through:

• Innovation
• Acquisitions and mergers
• New product development
• Increasing workforce

5. Why might small businesses struggle to compete with larger companies?

• Less access to economies of scale

• Higher brand recognition
• Better customer service
• More innovative products

6. Gap-fill: One method of measuring the size of a public limited company is by looking at __________.

7. Why are SMEs important? Give ONE reason.

8. What is a merger?

• A form of internal growth
• When two businesses agree to join together
• When one business takes over another
• A type of market expansion

9. Give one advantage and one disadvantage of running a small business

10. Gap-fill: One benefit of business growth is __________.