MGT1143:CH2, INTRODUCTION TO SMALL AND MEDIUM ENTEPRISES (SME)

1. Which of the following is NOT a characteristic of SMEs?

• Privately owned by individuals or partners

• Often lack resources

• Structured with a formal hierarchy

• Highly dependent on the owner for decision-making

1. Which of the following is a classification criterion for small-sized SMEs based on the number of full-time employees in the services sector?

• Less

  than 10 employees

• 1. Between 5 to 30 employees

• 1. Between 75 to 200 employees

• 1. More than 200 employees

1. Which type of business structure is typically associated with SMEs?

• 1. Public-listed company

• 1. Sole proprietorship

• 1. Multinational corporation

• 1. Government-linked company (GLC)

1. What is the maximum annual sales turnover for a micro-sized SME in the manufacturing sector?

• RM299, 999

• 1. RM300, 000

• 1. RM301, 000

• 1. RM3 million

1. Which of the following is NOT a contribution of SMEs to the economy?

• Supporting the country’s industrialization process

• 1. Reducing the country's population growth

• 1. Providing opportunities for entrepreneurial training

• 1. Contributing to the development of rural areas

1. What is one of the primary challenges faced by SMEs in acquiring raw materials?

• Lack of demand for their products

• 1. Suppliers prioritize bigger firms due to larger orders

• 1. Easy access to advanced technology

• 1. Abundant financial resources

1. What is the main financial problem faced by SMEs?

• Excessive

  profitability

• 1. Difficulty in securing loans, especially during the growth stage

• 1. Overabundance of investment opportunities

• 1. High employee turnover rates

1. Which of the following is a programme identified by the 2007 National SME Development Blueprint?

• Creating large multinational corporations

• Enhancing SMEs’ access to financing

• 1. Reducing the number of SMEs in the market

• 1. Encouraging SMEs to focus only on local markets

1. Why do SMEs struggle with marketing their products?

• They have access to unlimited marketing funds.

• 1. They are often forced to appoint middlemen, leading to price manipulation.

• 1. They have strong control over global markets.

• 1. Their products are always in high demand.

6. SMEs contribute to the improvement of a country’s balance of payments.

• TRUE

• FALSE