23 Questions
What is one disadvantage of the total assets approach in classifying business size?
Asset values are affected by inflation, causing previously small businesses to be reclassified.
What type of business involves the conversion of raw materials into products for society?
Manufacturing or assembly businesses, such as bakeries or assembly shops.
What is an example of a personal service business?
A business that provides services directly to individuals, such as haircutting or tailoring.
What is a characteristic of small businesses?
Independent management, small capital requirement, and mostly local operation.
What is one economic importance of small businesses?
They provide economic opportunities for entrepreneurs.
What type of business is engaged in the construction of buildings?
Contracting businesses, which may perform subcontracting jobs for larger contractors.
What is an alternative to being an employee for those who do not feel comfortable in that role?
Engaging in small business operation
What is one way small businesses support other businesses?
Suppliers of products and services to other businesses
How do small businesses support the government?
They pay taxes and perform other functions
What is one advantage of operating a small business?
Improving one's economic lot
What is another role that small businesses play?
Distributors of products and services of other businesses
What proportion of the labor force do small businesses employ?
A large proportion
What are the various types of small businesses that can be classified?
manufacturing, service, wholesaling, retailing, and general construction firms
What are the benefits of small businesses to the economy?
provide economic opportunities for entrepreneurs, products and services to consumers and industrial users, services to other firms, payment of taxes to the government, and employment
What are the characteristics of small businesses?
independent management, small capital requirements, and mostly local operation
What is the importance of small businesses in society?
they are important segments of our society
What is the definition of a small business?
one which is independently owned and which is not dominant in its field of operation
What are the four benefits of operating a small business, according to the text?
Opportunity to gain control over his own destiny, Opportunity to reach his full potential, Opportunity to reap unlimited profits, and Opportunity to make a contribution to society and receive recognition for his efforts.
What are the economic opportunities provided by small businesses to the society?
Products and services to consumers, Provider of Funds to the government in the form of taxes, Employment to the labor force, and Supplier of Products and services to others.
What is the main disadvantage of a small business operator's decision making?
Absorbing damages that happen as a result of his faulty decision making.
What are the two primary concerns for small business operators in terms of their finances?
Uncertainty of income and Risk of losing entire capital investments.
What is the impact of long working hours on the quality of life of a small business operator?
Lower quality of life until the business gets established.
What are the administrative tasks that small business operators may find tedious?
Paper works and other chores.
This quiz tests your knowledge of different types of businesses categorized by their size, including micro, small, medium, and large businesses. Learn about the characteristics and classification of each type of business. Understand how inflation affects the classification of businesses over time.
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