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WorksheetsAS Level: 3 - Size of Business
Total questions: 25
Worksheet time: 20mins
50
10
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Less access to economies of scale
7. Why are SMEs important? Give ONE reason.
9. Give one advantage and one disadvantage of running a small business
12. Identify TWO ways a business can grow internally
Which of the following is a common reason for governments to support small businesses?
They generate the highest profits
They require no regulation
They increase monopolies
They create employment and encourage innovation
A small bakery decides to open a second branch in a nearby town. What type of growth is this?
External growth
Internal (organic) growth
Merger
Joint venture
Two local fashion retailers agree to combine their operations into a single business. What is this an example of?
Takeover
Franchising
Merger
Product Development
Why might measuring business size by revenue alone be misleading?
A high-revenue business may still have low profits
Revenue always indicates success
Only large businesses have revenue
Revenue includes market share
A business grows too quickly without proper planning. What is the most likely consequence?
Reduced costs
Poor management and cash flow problems
Better economies of scale
Higher employee motivation
What is one risk of external growth through acquisition?
Increased customer loyalty
Culture clash and integration issues
Reduced costs
More control over operations
Which of the following best explains why small businesses can sometimes compete successfully against large firms?
They benefit from strong economies of scale
They can respond quickly to customer needs
They have more employees
They dominate international markets
What is meant by "market dominance"?
Being the smallest firm in a niche market
Having the largest share of total market sales
Producing the most products
Selling only in one country
A tech startup values creativity and flexibility over size and revenue. What might be a challenge for them when trying to grow?
Increased access to finance
More time for product development
Losing their innovative culture
Easier management structure
A business increases output and see an overall reduction in average cost per unit. What concept does this describe?
Market segmentation
Profit maximisation
Economies of scale
Break-even analysis
