Module 1, Chapter 1 - Organisational Size

Question 1

What does the term ‘SMEs’ stand for?

Answer 1

Small, Medium Enterprises

Question 2

What are the four main categories used to describe business sizes?

Answer 2

Micro, small, medium, and large enterprises are the four main categories used to describe the organisational size of businesses.

Question 3

What percentage of companies are SMEs?

Answer 3

99% of companies in the UK and EU are SMEs.

Question 4

What are the two main factors used to define the size of an organisation?

Answer 4

Different countries have different criteria for categorising organisations in terms of size, but the number of staff and turnover are often used as the main defining criteria.

Question 5

How many employees make up a Micro company?

Answer 5

0-9 employees

Question 6

How many employees make up a small company?

Answer 6

10-49 employees

Question 7

How many employees make up a medium company?

Answer 7

50-249 employees

Question 8

How many employees make up a large company?

Answer 8

250+ employees

Question 9

What are the negatives of focusing purely on the number of employees to determine a company size?

Answer 9

Focusing only on the number of employees means critical information about a company such as turnover can be ignored.

There are many companies that might be small in terms of the number of staff but generate significant amounts of revenue. Examples of such organisations are investment or property companies.