Mazen Khalil 12F

Worksheet – Chapter 3

Size of business

Gan and Arisa’s business is small compared to many other businesses in their
country. "We only have four employees but some of the largest clothing
manufacturers and retailers employ thousands of workers’ Gan commented to a
customer.

1) Explain two other ways of comparing business size, other than number of employees. [4]

1. Profit the business makes

2. Revenue, the amount of money they get in general

2) Explain two advantages to Gan and Arisa of operating a small business. [4]

1. Easier to start the business, since they will both pay less than they would have if they
opened the business on their own.
2. More ideas since there are two people.

3) Explain two disadvantages of operating a small business in the clothing industry. [4]

1. There's a risk that a high percentage of people won’t like the style of clothes the
company is producing
2. This relates to the first one, but fashion can change, and the trend could become
something completely opposite to what the business is selling therefore the business
will not make any sales.

4) Gan used to work in the family construction business but his brother was appointed managing
director – a role he wanted for himself. Explain two advantages and two disadvantages of family
businesses. [8]
ADVANTAGES
1. You are comfortable with your business partners, therefore you can say all your
honest opinions and share ideas freely
2. You understand how everyone thinks and what they don't and do like, you know the
strength and weakness of everyone in the business

DISADVANTAGES
1. Problems in the business may lead to problems at home, for example here Gan will
probably be mad and jealous of his brother even at home.
2. Rules could broken easily

5) The government in Gan and Arisa’s country has recently set up a ‘Small Business Support Service’.
Explain two benefits of successful small businesses to the country

1. Cost savings
2. Extra time to focus on growing the business

6) What does ‘internal business growth’ mean? [2]

When a business is trying to grow their own needs, hence they start producing more things,
different things as well so they can proceed with their needs.

7) Explain two reasons why Gan and Arisa might choose to expand their business internally.
1. New revenue potential
2. New profit potential