Business Studies Quiz - Enterprise, growth, size

What is the main objective of business growth?

• To decrease market share

• To increase profits

• To limit production

• To reduce competition

What is a characteristic of successful entrepreneurs?

• Risk aversion

• Strong leadership skills

• Disinterest in innovation

• Preference for stability

Which of the following is NOT a reason why governments support business start-ups?

• To benefit society

• To limit consumer choice

• To reduce unemployment

• To increase competition

What is one method of measuring business size?

• Customer satisfaction

• Number of products sold

• Brand recognition

• Value of capital employed

What is a limitation of measuring business size by the number of people employed?

• It is only applicable to large firms

• It ignores market share

• It does not account for output levels

• It is difficult to calculate

What is a horizontal merger?

• A merger between two businesses in different industries

• A merger between two businesses at different production stages

• A merger that involves a single business expanding

• A merger between two businesses in the same industry at the same stage

Which of the following is a benefit of business expansion?

• Less competition

• Greater market influence

• Higher average costs

• Increased risk of failure

What is a common cause of business failure?

• Strong financial backing

• Effective management

• Lack of management skills

• High customer satisfaction

Why might some businesses choose to remain small?

• To expand rapidly

• To avoid heavy workload

• To increase market share

• To maximize profits

What is a liquidity problem?

• Increased sales revenue

• High profit margins

• Shortage of cash

• Excess cash flow