Chapter 3 - Enterprise, business growth and size

What is a characteristic of an entrepreneur?

• Pessimistic

• Introverted

• Hardworking

• Lazy

What is a benefit of being an entrepreneur?

• No use of personal skills

• Limited income potential

• Lack of personal interests

• High income potential

What is included in a business plan?

• Favorite color

• Hobby details

• Favorite food

• Market information

Why do governments support start-ups?

• Increase unemployment

• Benefit society

• Decrease competition

• Reduce output

How can business size be measured?

• number of employees

• value of profit

• Value of output

• value of capital

What is external growth in business?

• Ignoring competition

• Decreasing in size

• Merging with another business

• Staying the same size

What is an advantage of horizontal integration?

• Increased competition

• Reduced number of competitors

• No economies of scale

• Smaller market share

What is a problem linked to business growth?

• Easy to control

• Good communication

• Lack of finance

• Similar management styles

Why do some businesses fail?

• No business plan

• No budget

• No government grant

• No need for bank loan

Why do businesses stay small?

• Large market size

• Desire for external growth

• Owners' preference for control

• High number of customers