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WorksheetsEnterprise, Business Growth and Size
Total questions: 30
Worksheet time: 3hrs 30mins
What is a disadvantage of being an entrepreneur?
Choosing how to use their time and money
Lost stable income from not being an
employee of another business
Profit and income may be even higher than working as an employee for another business
Becoming famous and successful if the business grows
Vertical forward integration is when a business merges with or takes over another business that is in the same industry but at an earlier stage of production.
True
False
Value of capital employed is a way to measure business size, in businesses that depend mostly on machines and technology.
True
False
A business merger or takeover, both mean the same thing.
True
False
One of the ways that governments can support businesses, is by providing them with grants to train employees.
True
False
What is the MOST important characteristic of an entrepreneur?
Creative
Risk taker
Smart
Good communicator
What is meant by an entrepreneur?
A person who invests money (capital) into a business
A business consultant who can give advise on business strategies and decisions
Someone who is employed as a manager of a business
A person who organizes, operates and takes the risk for a new business idea
Why do governments support business start-ups?
Giving consumers more choice and
competing with existing businesses
Social enterprises which offer benefits to the society, other than jobs and profits
The economy benefits from increased output of goods and services
All of the above
Business objectives, a mission statement, and a product description are examples of what is included in a business plan.
True
False
Which one of the below is NOT a way to measure business size?
Number of output
Value of sales
Value of output
Number of employees
What is a disadvantage of business growth?
Larger market share
Business growth is expensive
More profits
More status and prestige for the owners and managers
What is a form of internal growth?
A business merges with another business in the same industry
A business merges with/takes over another business in a different industry
A business opening up a new branch
A business buys out another business in the same industry
Business objectives and company background are both contents of a business plan.
True
False
Which of the below agent (s) is (are) interested in comparing the sizes of businesses?
Governments
Suppliers
Employees
All of the above
Banks are interested in comparing business size.
True
False
The value of sales is a way used to measure business size.
True
False
Business size and business success are both the same thing.
True
False
A firm taking over or merging with another firm that is in a completely different industry is called ______?
Conglomerate Integration (Diversification)
Horizontal Integration
Vertical Integration
Vertical Forward Integration
A merger or takeover where a business buys out a business in the previous stage of production is called ______?
Horizontal Integration
Vertical Backward Integration
Vertical Forward Integration
Conglomerate Integration (Diversification)
A merger or takeover of another business in the same industry in the same sector of production is called _______?
Horizontal integration
Vertical backward integration
Vertical forward integration
Conglomerate integration
When two or more businesses agree to join together to become one large business, is called a 'merger'.
True
False
One business buys out another business, so one business no longer exists is called a 'merger'.
True
False
Which one (s) of the below is (are) used to measure business success?
Profit
Customer satisfaction
Value of sales (revenue)
All of the above
Which of the below is NOT true about business growth?
Integrating with another business is fairly easy in terms of management styles
With business growth, there is poorer communication
Growth is expensive
Bigger businesses are harder to control
One of the reasons why a business would fail is because they failed to adapt to changes in the market.
True
False
Why do some businesses fail?
Expanding too quickly can cause managerial and financial problems
Failing to change with the market demands
Inefficient financial planning
All of the above
Why would some businesses NOT grow?
The government is stopping them from growing
They are not able to receive loans from banks
They are not able to receive support from governments
Owners or managers did not study business or management
Sometimes the market size makes businesses remain small.
True
False
Sometimes the market size makes businesses remain small.When entrepreneurs are well educated, knowledgeable and experienced, there will NOT be a risk of failure of new business start-ups.
True
False
Ideas can be transferred between the different businesses when conglomerate integration takes place.
True
False
