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WorksheetsSession 5
Total questions: 20
Worksheet time: 10mins
Why is it important for a business to match its scale with its level of operations?
To minimise competition
To maximise profit
To reduce taxes
To limit employee turnover
What does "capital employed" in a business include?
Number of employees
Retained profit + Share capital + Long-term liabilities
Market share percentage
Total sales revenue
Which stakeholder group might be interested in a company's profit levels for reasons such as job security and pay rises?
Government
Investors
Employees
Customers
How is market capitalization calculated?
Total sales revenue × Number of employees
Current share price × Total number of shares sold to the general public
Profit margin × Total revenue
Number of products in the portfolio × Market share percentage
What is profitability in business terms?
The total revenue generated
The percentage profit margin
The market share percentage
The number of employees
What is one limitation of using share prices to measure a company's size?
Share prices are stable and unchanging
Share prices are based on perceptions and can change daily
Share prices are determined by the number of employees
Share prices only apply to small businesses
What does "work specialisation" refer to in the context of business size affecting organisations?
The number of products in the portfolio
The degree to which tasks are divided into separate jobs
The market capitalization
The number of countries the business operates in
What is the primary purpose of measuring an organization's size?
To evaluate social responsibilities
To determine taxes to charge
To match the scale of the business with its level of operations
To limit customer base
Why might a government need to know the size of a business?
To provide job training
To charge appropriate taxes and provide support
To limit enterprise growth
To reduce employee benefits
What might be a specific measure of business size for sports teams?
Market capitalisation
Size of arenas and stadiums
Number of products in the portfolio
Employee count
How do public limited companies raise extra capital?
By investing more of their own money
By taking loans
By selling shares to the general public
By reducing workforce
What is NOT a method of measuring business size?
Number of employees
Market specialisation
Sales revenue
Market capitalisation
Why might customers need to know the size of a business?
To determine the company's age
To assess reliability, sales service, and reputation
To estimate the number of products in the portfolio
To calculate profit margins
What factor can cause sharp drops in a company's market capitalization overnight?
The number of products sold
Perceptions of how well the business is doing
Total floor space
Employee count
What does "formalisation" refer to in the context of business size affecting organisations?
The size of the business's operations
The degree of reliance on technology
The extent to which rules and procedures are established
The number of employees
How might education institutions, such as schools, be measured in terms of size?
Market capitalisation
Number of students enrolled
Profit levels
Number of products in the portfolio
Why is there no globally agreed definition of small, medium, or large enterprises?
Lack of interest in defining business size
Cultural differences and varied measurement criteria
Technological limitations
Legal restrictions
Which measure is used to evaluate the "size" of a company quoted on the stock exchange?
Number of employees
Sales revenue
Market capitalisation
Market share percentage
What is one way private limited companies and public limited companies can raise extra capital?
By reducing the number of products in the portfolio
By increasing the number of employees
By selling shares
By decreasing market share percentage
What does "departmentalisation" refer to in the context of business size affecting organisation?
The number of products in the portfolio
The division of organisational functions into separate units
The market capitalisation
The size of the business's operations
