10 Questions
What is the definition of 'small' and 'medium sized' enterprises (SME) in a European perspective?
Enterprises with less than 250 employees
What was the reason for the growing interest in small and medium sized firms over the last decade?
The emphasis on the Enterprise Culture by the Conservative government
Why are small firms dominant in retail distribution and personal services?
Because they face low entry barriers
What did Margaret Thatcher say about small businesses in 1984?
The more small businesses there are, the more enterprising that society is bound to be
What is the reason for some firms to have a small optimum efficient plant size?
Economies of scale are not important in the industry
What is the principal-agent problem in public companies?
The problem of information asymmetry and misaligned incentives between shareholders and CEOs/senior managers
What is X-inefficiency?
The inefficiency that arises when a firm produces at a larger scale than it could
What advantage do small firms have over large firms in filling niche markets?
Small firms can adapt their size to meet demand in niche markets
What is Allocative inefficiency?
The inefficiency that arises when a firm produces at the same scale as it could
What is one way that small firms can gain the advantages of bulk-buying while still retaining their independence?
Co-operatives
Test your knowledge about small and medium-sized enterprises (SMEs) with this quiz! Learn about the significance of SMEs in the current economic climate and their importance in fostering an enterprising society. Explore the characteristics and definitions of SMEs in a European perspective. Challenge yourself with questions about the impact of government policies on SMEs and their role in driving innovation and growth. This quiz is perfect for entrepreneurs, business owners, and anyone interested in the world of SMEs.
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