Comprehension

Date: 2015-10-07; view: 480.

3.4.1 Answer the questions using the active vocabulary.

1. How does the UK Report of the Committee of Enquiry into Small Firms define small firms?

2. The 1985 Companies Act defined small firms as those having

- turnover under 2 million pounds sterling;

- net assets under 975,000 pounds sterling;

- an average of 50 or less employees.

Compare these data with the information given in the text and state the general trend.

3. What do you think are the most relevant reasons for small firms to exist?

4. Why do you think small firms are referred to as ‘seed beds' for new industries and market leaders?

5. Why is creation of a more favorable tax regime for small firms important?

6. Can you guess the difference between venture capital and corporate venturing if there is any?

7. What is the economic effect of economies of scale?

8. The benefits of growth include the development of a skilled workforce. Which of the two kinds of economies of scale can this statement illustrate?

9. Could you think of any examples of multinational corporations which have become household names?

10. What were the reasons for the rapid growth in the number of MNCs in the 20^th century?

11. What is the driving force for businesses to restructure?

12. What was the normal course of action of a business to divest itself of unprofitable operations?

13. When does an MBO occur?

14. What are the sources of financing MBOs?

15. Why do you think the problem of long-term debt becomes apparent in a recession?