4th Small Firms

4th Small Firms

Multiple Choice

Which of the following is not a suitable method for measuring the size of a firms?

• The number of employees

• the size of the profit

• the amount of capital employed

• the size of turnover

Multiple Choice

Which of the following is not an advantage of a small firm?

• Better communication

• flexibility

• economies of scale

• a personal service can be offered

Multiple Choice

Which of the following is a disadvantage of small firms?

• economies of scale

• lack of finance

• too bureaucratic

• poor worker motivation

Multiple Choice

An example of Organic growth is

• Merger

• Launching new products

• Acquisition

• Takeover

Multiple Choice

A merger is

• One business taking over control of another business

• One business buying shares in another business

• Two business agreeing to becoming one new business

• Two businesses co operating with each other.

Multiple Choice

Economies of scale are gained when a business...

• decreases it's production and causes an increase in average production costs

• increases it's production and causes a decrease in average production costs

• maintains production levels and causes an increase in average production costs

• increases it's production and causes an increase in average production costs

Multiple Choice

Diseconomies of scale occurs when a business...

• becomes too large to run effectively and efficiently.

• grows larger and manages their operations effectively.

• grows slowly and maintains growth.

• becomes very large but still manages to run effectively.

Multiple Select

Examples of capital-intensive industries include:

• Manufacturing

• Soft-drink production

• Hospitality

• Oil extraction

Multiple Select

Examples of labour-intensive industries include:

• Manufacturing

• Teaching

• Sports coaching

• Psychiatry

Multiple Choice

What does CAD stand for?

• Code and Design

• Computer Aided Design

• Create and Design

• Craft and Design

Multiple Choice

What does CAM stand for?

• Carefully Added Material

• Computer Aided Manufacture

• Computer Aided Making

• Careful Addition Manufacture