1.2

Question 1

How are businesses sizes measured

Answer 1

Turnover- value of total sales over a year
Number of employees-
Balence sheet total
Profit
Capital emplpoyed
Stock market value

Question 2

What does the Companies ACT 2006 State?

Answer 2

it defines the size of a business

Question 3

Measured via Turnover

Answer 3

Micro-Less than £632,0000
Small-Less than 10.2 mill
Medium-Under 36 mill
Large-More than 36 mill

Question 4

Balance Sheet

Answer 4

Micro-less than £316,000
Small-less than 5.1m
Medium-18m
Large-More than 18m

Question 5

Number of employees

Answer 5

Micro-Less than 10
Small-Less than 50
Medium-250
Large- more than 250

Question 6

What impact does size have upon activities and operations

Answer 6

Co-Ordination
Intergration
Agility
Communication
Waste
Formality

Question 7

Co-Ordination

Answer 7

supervision of teams can be harder as the business expands, leaders may become disconnected. Leads to impacts on Quality Control and Effciency.Important to review arrangements.

Question 8

Intergration

Answer 8

Motivation and morale can decrease as employees feel less directly involved in projects and less appreciated.Tasks/Work patterns may change leading to increase in staff turnover.

Question 9

Agility

Answer 9

As a business grows it can become less able to quickly respond to chnges within the market, If it grows too rapidly collabroation and may decrease and leads to in flexability could damage the repuation of the business.

Question 10

Communication

Answer 10

Communication and information may be lost

Question 11

Waste

Answer 11

Increases when employees are alienated from responsibility and accountability.

Question 12

Formality

Answer 12

Formalilty will increase as informal discussions are less likley to take place.

Question 13

Key Word:Misson Statement

Answer 13

Sets out the scope and purpose of an organisation

Question 14

Key Word:Vision Statement

Answer 14

Looks at where the business will be when it fufills its mission