Introduction Into Business

Question 1

Distinguish between a small, medium and large enterprise

Answer 1

Small business employ around 10 people or less, medium around 50 people or more and large 250 people or more

Question 2

What is an ltd(private limited company)

Answer 2

A Private run company for profit, the individuals are separate from the business in legal identity and have limited liability

Question 3

What is a plc(public limited company)

Answer 3

An ltd that requires a minimum value of £50,000 in order to put their company on the stock market and sell shares of their business

Question 4

Impact and importance of legal structure for a business

Answer 4

Helps to manage the financial and legal realities of the management of the business in the day -to-day runnings

Question 5

Distinguish between a small, medium and large sized business

Answer 5

Small-employ fewer than 50 people
Medium- between 50-250 people
Large-over 250 people

Question 6

How business size is measured and why it happens

Answer 6

Measured by the total value of the business eg assets and the amount of market share, this happens to show the current standpoint of the business in the market

Question 7

Factors that effect the size of a business

Answer 7

Economic factors eg inflation or recession, cash flow, current value of the business, geographic location

Question 8

Importance of the size of the business to its stakeholders

Answer 8

Effects the overall profitability and efficiency of the business eg large business has bigger access to resources