Chapter 3: Enterprise, business growth and size
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  • Question 1
    20 seconds
    Q. The advantage of a person becoming an entrepreneur is:
    answer choices
    more money'll always be earned than working for an employer
    there is more independence than when working for an employer 
    Less risk of business failure 
    no oppotunity cost involved in becoming anentepeneur
  • Question 2
    20 seconds
    Q. An important characteristic of a successful entrepreneur is that:
    answer choices
    they are always rich
    they are risk takers
    they are usually shy
    they want to avoid hard work
  • Question 3
    30 seconds
    Q. A business plan for a new business will include all of the following except
    answer choices
    financial forecasts
    market research data
    details of the business owners
    previous years' accounts
  • Question 4
    20 seconds
    Q. What benefit does drawing up a business plan bring for a new entrepreneur?
    answer choices
    it shows exactly how much money the firm will make
    it makes sure the bank will lend all the capital needed
    it means that the business start up has no risk of failure
    it helps in organising the resources needed for the new firm
  • Question 5
    20 seconds
    Q. Which of the following is not an effective way of measuring the size of a business?
    answer choices
    number of employees
    value of sales
    value of capital invested
    profit level
  • Question 6
    20 seconds
    Q. Which of the following options is most likely to be a reason why a firm may wish to expand?
    answer choices
    To keep control of the business
    To increase the level of profits the firm will make
    To encourage competition
    To avoid publicity
  • Question 7
    20 seconds
    Q. Which of the following is an example of horizontal integration between two businesses?
    answer choices
    An oil company and an insurance company merge
    A shoe shop buys out a shoe factory
    A steel firm takes over a coal mine that supplies coal
    Coca-Cola takes over a small soft drink business
  • Question 8
    20 seconds
    Q. One of the reasons for vertical integration between two businesses could be to:
    answer choices
    diversify into a completely different industry
    reduce competitors supplying the same product
    control the supply of raw material
    obtain higher market share
  • Question 9
    20 seconds
    Q. One of the most common reasons for a new business not surviving is:
    answer choices
    too much time spent on developing the business plan
    no competitors in the industry
    poor cash flow as a result of poor financial planning
    consumers like dealing with small firms providing a service
  • Question 10
    20 seconds
    Q. If the risks of starting up a business are so high, why do entrepreneurs create new businesses?
    answer choices
    The rewards are always extremely low
    The rewards can be very high
    The risks of the business failing are very low
  • Question 11
    30 seconds
    Q. One way of overcoming the problems that often result from fast business growth is to
    answer choices
    integrate with a much larger business
    reduce the amount of capital invested in the business
    reduce communication between people to save time 
    operate the business in smaller units
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