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.

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.

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.