BM06 - Small and Medium Enterprises Flashcards
1
Q
Number of employees in SMEs?
A
Manufacturing: <100
Non-manufacturing: <50
2
Q
What are the pros and cons of SMEs being operated and managed by single individuals?
A
+ve: familiar with daily operation and management ➡️ ✅ close relationship with customers ➡️ ✅ understand their needs
-ve: insufficient experience and management skills
3
Q
What are the sources of capital for MNCs?
A
- Issue of shares / debentures
- Bank loans
- Bonds (with other companies?)
4
Q
What types of industries are SMEs mostly involved in?
A
- Import / export trade and wholesale
2. Professional and business services
5
Q
What type of enterprise are most local business units / establishments in HK?
A
SMEs! (>98%)
6
Q
Why don’t large companies provide specialised goods and services to narrow markets?
A
- ⬆️ costly
- ❌ profitable
7
Q
Types of business ownerships of SMEs?
A
- sole proprietorship
- partnership
- private / public limited companies
