Ch.6 Small and Medium Enterprises

The ownership of Small and Medium Enterprises (SMEs) can take different forms. SMEs (21%)

(1)  cover market segments which are not served by large companies.

(2)  provide more employment opportunities to local workers than large companies.

(3)  enjoy a lower tax rate than large companies.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following statements regarding Small and Medium Enterprises (SMEs) in Hong Kong is correct? (37%)

• SMEs enjoy a lower tax rate.

• SMEs can be listed on the stock exchange.

• SMEs are involved in primary and secondary production only.

• SMEs do not hire more than twenty employees.

All entrepreneurs (72%)

• earn profits by taking business risks.

• start businesses with their own capital.

• enter the market with new products.

• possess extensive knowledge and experience in the business.

Which of the following statements about small and medium enterprises (SMEs) in Hong Kong are correct? (44%)

(1)     An SME employs fewer than 50 persons.

(2)     SMEs contribute a majority of employment opportunities in Hong Kong.

(3) SMEs often provide products and services that complement large companies.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following is/are the characteristic(s) of small and medium enterprises (SMEs) in Hong Kong? (84%)

(1)     They are responsive to market changes.

(2)     They have a tall-type organizational structure.

(3)     Their tax rate is different from that of large companies.

• (1) only

• (2) only

• (1) and (2) only

• (2) and (3) only

Which of the following are the importance of small and medium enterprises to the local economy? (61%)

(1)     They provide materials and services to large businesses.

(2)     They provide unique products to satisfy the needs of the Hong Kong market.

They provide the major source of tax income for Hong Kong.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following illustrate the importance of entrepreneurship in business development? (77%)

(1)     Reduce business risks

(2)     Promote economic growth

Encourage innovation

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following statements about small and medium enterprises(SMEs) in Hong Kong are correct? (68%)

(1)     The majority of businesses in Hong Kong are SMEs.

(2)     The forms of business ownership of SMEs are either sole proprietorship or partnership.

(3)     SMEs are usually managed by their owners.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following statements about small and medium enterprises (SMEs) in Hong Kong is/are correct? (74%)

(1) The number of employees account for around 80% of total employment (excluding civil service) in Hong Kong.

(2) They can operate as a limited company

(3) The annual sales revenue of a SME must be below $5 million.

• (1) only

• (2) only

• (1) and (3) only

• (2) and (3) only

Which of the following statements about entrepreneurs are correct? (70%)

(1) They are willing to take on challenges.

(2) They promote economic growth by creating job opportunities.

(3) They promote market competition by introducing new products and services.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)