Assertion (A): Despite the trend towards larger businesses and multinational, many businesses remain small.Reason (R): Business owners value independence
Both A and R are true and R is the correct explanation of A.
Both A and R are true but R is not a correct explanation of A.
A is true but R is false
A is false but R is true
Assertion (A): It is necessary to provide a measure of the size of a business that is more objective and this may be important to different stakeholders.Reason (R): Governments need to know the effect of different businesses in employment and the economy.
What is the other name given for internal growth?
Mechanic growth
Organic growth
Lateral growth
Vertical growth
If a sugar milling factory buys a sugar plantation, what is the activity termed as?
Takeover
Acquisition
Horizontal merger
Vertical merger
Identify the type of merger involved when a national newspaper buys a paper mill in China.
Which of the following is NOT a diseconomies of scale?
Size
Bureaucracy
Low employee morale
Technical economies
The disadvantages businesses can get from expanding or growing too large are called.
Economies of scale
Diseconomies of scale
Economies of scope
All of the above
What is the other name given to a takeover?
Merger
Overtrading
Layoff
Which of the following are NOT a problem that a business has to overcome as it grows in size?
Competition rules
Financial and cash flow problems
Change in the form of business ownership
Some busineeses grow because their market grows or they develop new products and maintain their share of the market. Which type of growth is this?
Internal growth
External growth
