Worksheets19 Advantages and Disadvantages of large and small firms
Total questions: 12
Worksheet time: 6mins
Which of the following is not a suitable method for measuring the size of a firms?
The number of employees
the size of the profit
the amount of capital employed
the size of turnover
Which of the following is not an advantage of a small firm?
Better communication
flexibility
economies of scale
a personal service can be offered
Which of the following is a disadvantage of small firms?
economies of scale
lack of finance
too bureaucratic
poor worker motivation
which of the following is not an advantage of a large firm?
market domination
economies of scale
better communication
can undertake large scale contracts
Which of the following is a disadvantage of large firms?
lack of finance
higher average costs
difficult attracting staff
too bureaucratic
which of the following is an advantage of a small firms?
can benefit from economies of scale
ability to offer a personal service
can access a greater range of finance options
can attract the most qualified and experience staff
Which of the following is not a disadvantage of a small firm?
struggle to raise finance
difficult to attract highly qualified and experienced staff
can adapt more quickly to change
cannot exploit economies of scale
How is the size of firm measured?
economies of scale
turnover
innovation
quality of staff
Which of the following is not an advantage of a large firm
can win large scale highly profitable contracts
lower average costs due to size
personal contact may be lacking impacting on employee motivation
can dominate a market and have a high public profile which they can exploit
Which of the following factors encourage firms to grow?
poor access to sources of finance
desire to spread risk
government regulation monitoring levels of competition in a market
global economic instability
Which of the following questions is associated with the basic economic problem?
when to produce?
who should produce?
what to produce?
where should production be located?
which of the following might be considered a need rather than a want?
holiday
shelter
smartphone
pet cat
