19 Advantages and Disadvantages of large and small firms

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

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

• Better communication

• flexibility

• economies of scale

• a personal service can be offered

Which of the following is a disadvantage of small firms?

• economies of scale

• lack of finance

• too bureaucratic

• poor worker motivation

which of the following is not an advantage of a large firm?

• market domination

• economies of scale

• better communication

• can undertake large scale contracts

Which of the following is a disadvantage of large firms?

• lack of finance

• higher average costs

• difficult attracting staff

• too bureaucratic

which of the following is an advantage of a small firms?

• can benefit from economies of scale

• ability to offer a personal service

• can access a greater range of finance options

• can attract the most qualified and experience staff

Which of the following is not a disadvantage of a small firm?

• struggle to raise finance

• difficult to attract highly qualified and experienced staff

• can adapt more quickly to change

• cannot exploit economies of scale

How is the size of firm measured?

• economies of scale

• turnover

• innovation

• quality of staff

Which of the following is not an advantage of a large firm

• can win large scale highly profitable contracts

• lower average costs due to size

• personal contact may be lacking impacting on employee motivation

• can dominate a market and have a high public profile which they can exploit

Which of the following factors encourage firms to grow?

• poor access to sources of finance

• desire to spread risk

• government regulation monitoring levels of competition in a market

• global economic instability