chapter 4- business size, growth and external growth

Question 1

methods of measuring the size of a business

Answer 1

• number of employees
• turnover and profit levels
• stock market value
• amount of capital employed

Question 2

advantages and disadvantages for the employee in a large business

Answer 2

+ greater job security
- issue of poor motivation that may affect productivity

Question 3

advantages and disadvantages for the customers in a large business

Answer 3

+ more choices as they can offer a larger range of products
+ can sell products for a cheaper price
- less of a personal service
- may take longer to handle issues

Question 4

advantages and disadvantages for the suppliers in a large business

Answer 4

+ large businesses place larger and more regular order
+ supplying to a well known company can attract more clients
- businesses may push for cheaper prices
- may face strict quality of demand and tight deadlines