Enterprise, business growth and size

One of the benefits of becoming an entrepreneur is:

• More money will always be earned than working for an employer

• There is more independence than when working for an employer

• there is no risk of the entrepreneur's business failing

• there is no opportunity cost involved in becoming an entrepreneur

One of the key characteristics of successful entrepreneurs is that:

• they are always rich

• they are risk takers

• they are usually shy

• they want to avoid hard work

All of the following are likely to be included in a business plan for a new business except:

• financial forecasts

• market research data

• details of the business owners

• accounts from previous years

One of the benefits of developing a business plan for a new startup is:

• It shows exactly how much profit the business will make

• It makes sure the bank will lend all the capital needed

• It means that the business start up has no risk of failure

• It assists in organising the resources needed for the new business

Which of the following is not an effective way of measuring the size of a business?

• Number of employees

• Value of sales

• Value of capital employed

• Profit level

Which of the following is the most likely reason for owners wishing to expand their businesses?

• To keep control of the business

• To make higher profits

• To encourage competition

• To avoid publicity

Which of the following is an example of horizontal integration between two businesses?

• An oil company and an insurance company merge

• A shoe shop buys out the factory making shoes

• A steel firm takes over a coal mine that supplies coal

• Coca-Cola takes over a small soft drink business

In some industries, there are many successful small firms. One of the reasons for this could be that:

• some consumers demand specialist products or services

• there are great opportunities for economies of scale

• the industry is owned by the state

• the market is very large

One of the most common reasons for new business startups not surviving is:

• too much time spent on developing the business plan

• no competitors in the industry

• no financial planning leading to lack of cash

• consumers prefer to deal with small scale businesses offering personal service

One way of overcoming the problems that often result from rapid business growth is to:

• integrate with a much larger business

• reduce the amount of capital invested in the business

• reduce communications between people in the business as they are all so busy

• operate the business in smaller units