Business Size And Growth

Question 1

Name 2 factors that help measure a business size

Answer 1

1. Number of employees
2. Amount of capital invested
3. Sales turnover
4. Market capitalisation
5. Assets
6. Brand name and history

Question 2

Name 2 benefits of being a big company

Answer 2

1. Trendy
2. More choice of employees
3. Easier to obtain EOS
4. Huge marketing budget

Question 3

Name 2 ways in which smaller businesses fight back against larger business

Answer 3

1. Good customer service and relationships
2. Focus on a particular section of the market
3. Become more flexible to customer needs
4. Use local producers

Question 4

Name 2 reasons for international trade

Answer 4

1. Easier to obtain EOS
2. Increased specialisation
3. Aids business growth

Question 5

Define what a free trade area is

Answer 5

A free trade area has no tariffs or quotas

Question 6

Define what a customs union is

Answer 6

A customs union is where countries have common external tariffs

Question 7

Define what a common market is

Answer 7

A common market is a market with common tariffs and free movement of FOP

Question 8

Name 2 issues UK businesses have with exporting goods

Answer 8

1. Exchange rate issues
2. Cultural issues
3. Payment issues

Question 9

Name 2 ways the GVMT advises and assists UK businesses to export

Answer 9

1. Subsidies
2. Export insurance
3. Training and support for exporting

Question 10

Define a multinational

Answer 10

A multinational is a business that operates in multiple economies

Question 11

Name 2 benefits of being a multinational

Answer 11

1. Provides jobs for less skilled workers

2. Easier to obtain EOS

Question 12

Name 2 negatives of multinationals

Answer 12

1. Can exploit the workforce

2. Can be uncompetitive (put other firms out of business)