Worksheets1.3 Size of Business (AS)
Total questions: 19
Worksheet time: 10mins
Revenue definition is........
The total value of all long-term finance invested in the business
Sales of the business as a proportion of total market sales
Total value of sales made by a business in a given time period
The total value of a company's issued shares
Sales of the business as a proportion of total market sales
Market capitalisation
Market share
Revenue
Capital employed
Which options help measure the size of a business. Select the best 2 options.
revenue
number of owners
type of products produced
type of services provided
The proportion of sales in a given market or industry is called...
total revenue
market share
profit
share market
Qantas is classified as...
a small business
a small/medium business
a large business
Market capitalisation = current share price X
total number of shares issued
total number of people
inputs
total revenue
Market share =
(total sales of business/ total sales of industry) x 100
(Total sales of industry/ total sales of business) X 100
Total sales X 10
Tick all the ways that small businesses can help the economy
create jobs
potential to turn into bigger businesses
provide food
convenience
Tick the ways that the government can help small businesses.
Increase profit tax
Workshops
loan gurantee schemes
marketing
Advantages of a Merger might be
Better deals because of increased order size, bulk-buying discounts etc.
Increased revenue and market share. Increased size of the combined company increases market power and ability to set higher prices
To gain resources. If one company has resources (e.g. technology) that another one wants then a merger may be the most cost effective way to get access to those resources
Slow growth so can be easily managed
A merger is
Two business agreeing to becoming one new business
One business buying shares in another business
One business taking over control of another business
Two businesses co operating with each other.
Disadvantages of Mergers could be
Clash of Cultures. All businesses have a slightly different culture and they may not work well together
Mergers lead to bigger more efficient business
Possible communication problems. As the business gets bigger, or if there are now too many employees
Unreliable partners. A good merger will depend on trust between the businesses
Which option best describes the term takeover?
When two firms agree to join together to make one new business
When a business finds a new market in another country
When one business purchases another business
When a business brings something new to the market
Internal or external growth?
A restaurant opens another restaurant in a different city
internal
external
Internal or external growth?
A restaurant merges with a farm.
internal
external
Select the advantages of running a family business.
Shared knowledge
informality
reliability and pride
commitment
Select the disadvantages of running a family business.
potential conflict
informality
higher profits
lack of pride
