How much do you know about Small and Medium-sized Enterprises?

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

What is the definition of 'small' and 'medium sized' enterprises (SME) in a European perspective?

  • Enterprises with less than 250 employees (correct)
  • Enterprises with less than 1000 employees
  • Enterprises with less than 500 employees
  • Enterprises with less than 100 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 (correct)
  • The emphasis on the Welfare Culture by the Conservative government
  • The emphasis on the Welfare Culture by the Labour government
  • The emphasis on the Enterprise Culture by the Labour government

Why are small firms dominant in retail distribution and personal services?

  • Because they have a better marketing strategy
  • Because they have a large number of employees
  • Because they face low entry barriers (correct)
  • Because they have economies of scale

What did Margaret Thatcher say about small businesses in 1984?

<p>The more small businesses there are, the more enterprising that society is bound to be (A)</p> Signup and view all the answers

What is the reason for some firms to have a small optimum efficient plant size?

<p>Economies of scale are not important in the industry (C)</p> Signup and view all the answers

What is the principal-agent problem in public companies?

<p>The problem of information asymmetry and misaligned incentives between shareholders and CEOs/senior managers (D)</p> Signup and view all the answers

What is X-inefficiency?

<p>The inefficiency that arises when a firm produces at a larger scale than it could (A)</p> Signup and view all the answers

What advantage do small firms have over large firms in filling niche markets?

<p>Small firms can adapt their size to meet demand in niche markets (B)</p> Signup and view all the answers

What is Allocative inefficiency?

<p>The inefficiency that arises when a firm produces at the same scale as it could (B)</p> Signup and view all the answers

What is one way that small firms can gain the advantages of bulk-buying while still retaining their independence?

<p>Co-operatives (B)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser