WorksheetsUnit 20 (Firms) (IGCSE)
Total questions: 39
Worksheet time: 33mins
Connect the correct answer.
Three sectors of industry depend on each other, and cannot operate independently to produce goods and services. This means (a) .
Firms in the three sectors are linked through a process. This process is called --------.
(a)
Individuals and owners belong to (a) sector.
Government plays an important role in (a) sector.
How do you measure the size of a firm?
The business which is controlled by a individual is called (a) .
Which are the advantages of small firms? (Can choose more than one.)
Less legal formalities
Economies of scales
Receiving all the profits
Knowing customers well
Easier to borrow money from banks
What are the disadvantages of small firms? (Can choose more than one.)
More risks of failure
Loss of control
Limited capital
Slower decision making
Lack of continuity
Acquiring a competitor is an ____ growth method.
internal
external
Opening new branches of shops is an _____ growth method.
internal
external
Two firms forming a new company is called (a) .
Buying a lot of shares in other business is called (a) .
Purchasing one brand's name (Or license) is called (a) .
Toothbrush company buying bath towel company can be seen as ______ merger.
horizontal
backward vertical
Forward vertical
Conglomerate
Grab Taxi buying Uber Taxi Company's share can be seen as ______ merger.
horizontal
backward vertical
Forward vertical
Conglomerate
Seafood restaurant acquiring a fishing business can be seen as ______ merger.
horizontal
backward vertical
Forward vertical
Conglomerate
______ merger has control over the quality of raw material.
horizontal
backward vertical
Forward vertical
Conglomerate
Motor vehicle company acquiring an insurance company can be seen as ______ merger.
horizontal
backward vertical
Forward vertical
Conglomerate
______ merger can gain more skilled employees.
horizontal
backward vertical
Forward vertical
Conglomerate
______ merger may make some people's job lost.
horizontal
backward vertical
Forward vertical
Conglomerate
Economies of scale are the (a) benefits of large-scale operations which reduce average of production.
Identify one of internal economies of scale.
(a)
Which economies of scale is this?
" Larger firms are able to borrow money more easily."
Financial
Managerial
Risk-bearing
Marketing
Which economies of scale is this?
" Larger firms can save more money by buying more materials."
Technical
Managerial
Purchasing
Research and Development
Which economies of scale is this?
" Specialists can be hired for more efficient work results and increased productivity."
Financial
Managerial
Risk-bearing
Marketing
Which economies of scale is this?
" Larger firms can produce more products to prevent failure."
Research and Development
Managerial
Risk-bearing
Marketing
Which economies of scale is this?
" Buying expensive machines can be expensive but the outputs will be increased."
Technical
Managerial
Purchasing
Marketing
Which economies of scale is this?
"One advertising of a company can promote all the products produced from the company ."
Financial
Managerial
Risk-bearing
Marketing
Which economies of scale is this?
" Larger firms are able to borrow money more easily."
Financial
Managerial
Risk-bearing
Marketing
Which economies of scale is this?
" Larger firms can do innovations and produce new products."
Marketing
Managerial
Purchasing
Research and Development
Identify examples of external economies of scale.
Which external economies of scale is this?
"The company benefits from being locating near delivery company."
Access to transportation networks (infrastructure)
Proximity to related firms (Ancillary and commercial services)
Availability of skilled labour
Reputation of the geographical area
Co-operation
Which external economies of scale is this?
"Two garment factories can share their investment cost for developing a new fabric."
Access to transportation networks (infrastructure)
Proximity to related firms (Ancillary and commercial services)
Availability of skilled labour
Reputation of the geographical area
Co-operation
Which external economies of scale is this?
"Myanmar Plaza was a popular spot for young people. Company should do promotion campaign at that place."
Access to transportation networks (infrastructure)
Proximity to related firms (Ancillary and commercial services)
Availability of skilled labour
Reputation of the geographical area
Co-operation
Which external economies of scale is this?
"There are many animation studios in Japan. So, the company will be easier to find the studio in Japan for virtual advertisement."
Access to transportation networks (infrastructure)
Proximity to related firms (Ancillary and commercial services)
Availability of skilled labour
Reputation of the geographical area
Co-operation
Which external economies of scale is this?
"The restaurant is located near a local market so the restaurant can easily get materials from the market."
Access to transportation networks (infrastructure)
Proximity to related firms (Ancillary and commercial services)
Availability of skilled labour
Reputation of the geographical area
Co-operation
When average costs of production start to increase as the size of a
firm increases, (a) arises.
When the company becomes too large, it can cause the following problems. (Can choose more than one.)
Poor communication
Having to use own money
Slower decision making
Lack of motivation
Doing all the work by one person
