Size Of A Business Flashcards
Which committees are interested in the size of the business and why
Business managers
For competition and making decisions based on the performance of the business
Government
Determine the growth of large and small business
To be able to support business
Taxation
Mention the different measures of assessing the size of a business
No of employees
Marker capitalisation.
Sales turnover
Market share
Capital employed
Define sales turnover
Value of sales made over a period of time by the business
Selling price x quantity
Define capital employed
Total value of long term finance invested in bst
Define marker capitalisation
Total value of company’s shared issues
Current share price x total no of shared issued
Define market share
Sales of bst as a proportion of total market shares
What is the significance of small and micro bst
Create a high % of jobs
Variety in market
Often service the need of large bst
Located all over the country not like 1 large business
Creates innovative entrepreneurs that create new goods and services
Imp element in outsourcing systems of larger businesses
Have lower cost
Imp part of thriving small bst sector and eco
Improve standard of living + gdp + taxes
Usually small firms become larger firms boosting the economy
Supply specialist goods and services
Mention the government assistance for small bst
Decrease profit tax and increase short term and long term finance
Short term + long term loan garentee
Support + advice from govt agencies
Finding good locations for bsts
Explain loan garuntee
Explain info support and advice
Explain decrease in rate of profit tax
What are the adv of large firms
What are the disadvantages of large firms
What are the adv of small firms
What are the disadvantages of small firms
Define external growth
Define internal growth
What are the diff forms of external growth
Define mergers
Define joint ventures
Define takeovers
How can mergers or takeovers fail to acheinve objectives
What are the problems with mergers and take overs and what are the possible strategies
Give description for each form of external growth
Mention the strengths of family business
Mention the weaknesses of family business
Define commitment
Define reliability and pride
Define knowledge continuity
Define informality
Define tradition
Define continuity problem
Define conflict
