Tutorial 10 sme

What is the definition of a Small Medium Enterprise (SME)?

• A large corporation with a global presence

• A business with a limited number of employees and revenue

• A non-profit organization that supports entrepreneurs

• 1. A government agency that promotes economic development

  
  

Which of the following factors is typically used to determine the size of an SME?

• The number of customers served

• The amount of office space available
  

• The number of employees or annual revenue

• The geographical reach of the business

Which of the following is an advantage of starting an SME?

• Access to unlimited financial resources

• Ability to make quick decisions and adapt to market changes

• Lower level of risk compared to larger businesses

• Limited potential for growth and expansion

Which of the following is a common challenge faced by SMEs?

• Limited access to funding and capital

• Lack of legal requirements and regulations

• Excessive bureaucracy and red tape

• Strong market competition from larger corporations

Which of the following is an example of a micro-enterprise?

• A manufacturing company with 500 employees

• A restaurant chain with multiple locations

• A sole proprietorship offering freelance graphic design services

• A technology startup with venture capital funding

Which of the following statements about SMEs is true?

• SMEs are only found in developed countries

• SMEs have a higher rate of failure compared to larger businesses

• SMEs are less likely to innovate compared to larger businesses

• SMEs play a vital role in job creation and economic growth

Which of the following is a common characteristic of successful SMEs?

• Overreliance on a single customer or market segment

• Lack of a clear business strategy and vision

• Emphasis on building strong relationships with customers

• Ignoring the needs and demands of the target market

Which of the following financing options is typically used by SMEs to fund their operations?

• Initial Public Offering (IPO)

• Private equity investments

• Government grants and subsidies

• Corporate bonds and debentures

Which of the following is an example of a social enterprise?

• A for-profit business focused on maximizing shareholder value

• A non-profit organization providing healthcare services

• A family-owned business passed down through generations

• A business that combines profit-making with social impact

Which of the following is a key factor for SMEs to succeed in the global market?

• Having a small-scale operation

• Focusing only on the domestic market

• Embracing innovation and technology

• Relying solely on traditional marketing methods