12 Questions
What is a defining characteristic of small firms?
Limited in size and revenue
Why is it difficult for small firms to attract experienced employees?
Inability to afford competitive wages and training
What advantage do small businesses have over large businesses in terms of decision-making?
Owner's full control over decision-making
Why may a firm choose to remain small instead of expanding?
Preference of owners to stay small
What is a disadvantage small firms face due to their size?
Struggles to raise finance
Why are small businesses more likely to innovate compared to large businesses?
Less to lose and willingness to take risks
Which sector includes economic activities involving extraction of raw natural materials?
Primary sector
During which centuries did the secondary sector gain importance?
19th and 20th centuries
Which sector offers intangible goods and services to consumers?
Tertiary sector
Which type of firm is usually owned and run by the government?
Public firm
What was the main form of economic activity in pre-modern times?
Subsistence farming
Which industry sectors are commonly public-owned according to the text?
Defence, arms, and nuclear industries
Learn about the classification of firms based on the sectors they operate in and their relative sizes. Explore the three main categories of firms: primary sector focusing on extraction of raw natural materials, secondary sector involving manufacturing, and tertiary sector comprising services.
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