Roles of the small business in society

Which of the below is not the advantage of having higher capital?

• Easier to open more branches

• Easier to hire employee

• Easier to establish partnership

• Easier to increase production

Below is not a way to raise capital..

• Selling assets

• Borrowing money from friends
• Issuing loan

• Investing in stocks

Which of the options below explain the term niche market?

• A niche market is a small, specialized market with specific group of customers with unique needs and preferences.

• A niche market is a market that targets customers based on their age and gender

• A niche market is a market that targets customers for a short period of time

• A niche market is a large and general market that targets a wide range of customers

Which of the below is not the advantage of large business structure?

• People are entrusted with specific work.

• Owner can specialize their employee for a specific expertise

• The company may have a better organization management

• Owner have high level of autonomy to run his business

Write down three advantages of having a rigid company structure.

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Answer explanation

•Less exposure to job functions for individuals. In a big company, people will be entrusted with specific work.

•It is a chance for every owner to specialize in a specific expertise.

• The owner can hire a more skillful person.

•The company may have better organization management

Employees have more opportunities to grow. After all large companies typically have a structure in place to move up the career ladder.

Suppose you want to get more experience and be a skillful accountant, which kind of company will help you better?

• Large business

• Small business

You are a fresh graduate and looking for jobs to start your professional career, which kind of company will help you better?

• Large business

• Small business

Which of the below is true about cost of fund?

• The cost of funds refers to the interest rate that financial institutions/banks pay to get funds (money) for lending to their clients

• The cost of funds refers to the interest that financial institutions/banks pay to get funds (money) for lending to their clients

• The cost of funds refers to the sum of money that financial institutions/banks pay the central bank

How do small businesses help to improve economy growth?

• Small businesses are providing goods and services within the economy.

• Small businesses are reluctant to innovation and productivity

• Small businesses decrease job opportunities and competition
• Small businesses have no impact on economic growth

Explain how small business can cut the number of unemployment.

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Answer explanation

Small businesses provide many jobs. In addition, they may recruit local workers around them, who are often not absorbed by large companies due to inadequate skills.