Business size and growth ✔️

Question 1

Small enterprise

Answer 1

A business with 10-49 employees

Question 2

Medium enterprise

Answer 2

a business with 50 to 249 employees

Question 3

Large enterprise

Answer 3

A business with 250 or more employees

Question 4

How is the size of a business measured

Answer 4

There are several different indicators:
- assets
- revenue
- production
- market capitalisation
- number of employees
- capital invested

Question 5

Factors that affect the size of a business

Answer 5

• Entrepreneurial skill
• managerial ability
• availability of finance
• availability of labour
• nature of the business
• nature of the market

Question 6

Evaluate the impact and importance of the size of business to the stakeholders of a business

Answer 6

• Customers - the size can impact their buying decisions
• Employees - it can impact their training / skills / bargaining power (for wages) / benefits (i.e. health) / opportunities for career advancements
• Shareholders - greater ability to generate profits
• Suppliers - their bargaining power / ability of benefiting from EOS
• community - impact on local economy’s / job opportunities / environmental impacts