1. Given the importance of the SME sector for innovation, economic growth and employment generation, its socio-economic role is paramount in:

1. Transitional economies
2. Developing economies
3. Economies throughout the world
4. Western industrialised economies 

2. The current trend towards knowledge-intensive industries means that competitiveness increasingly depends on the management of:

1. Human capital
2. Physical capital
3. Financial capital
4. Liabilities

3. Generally, SMEs and smaller firms in particular:

1. Tend to have well-developed HR systems
2. Tend to be an homogeneous cohort of businesses
3. Tend to have well-developed ICT systems
4. Tend to lack formal HR systems

4. The likelihood of the presence of HR systems in SMEs:

1. Increases by size
2. Can be influenced by prevailing industry conditions
3. Can be influenced by supply chain relationships
4. All of the above

5. Despite the dearth of conclusive evidence-based prescriptions:

1. A formal, strategic approach to managing HR is unsuitable for SMEs
2. A strategic approach to managing HR is often seen as vital to the success of SMEs
3. Informality is always detrimental to effective HR management
4. Robust ICT systems guarantee successful human capital management in SMEs

6. SMEs face a host of challenges stemming from:

1. Their external environment
2. Being under-resourced in terms of human capital
3. Being under-resourced in terms of financial capital
4. All of the above

7. Changes relating to HRM practices are often:

1. Easily managed in SMEs
2. Follow typical life cycle models, moving always from informal to formal practices
3. See transitory phases characterised by the coexistence of formality and informality
4. None of the above

8. Small firms in general are more likely to be employing:

1. A higher percentage of employees from a range of groups that have traditionally faced some form of disadvantage in the labour market
2. More qualified employees
3. More workers than they need
4. Older workers than their larger counterparts

9. In SMEs:

1. Formalised procedures for managing performance reviews, disciplinary processes, or dismissals of workers tend to be rare
2. The rewards of employment are multidimensional, including the potential payoff from gambling on an innovation, an invention or business prospects, or the opportunity to work in an environment unencumbered by the traditional constraints of bureaucracy
3. There is considerable variation in undertaking recruitment and selection, training and development, and appraisal and reward
4. All of the above

10. With regard to policy-making, an examination of ‘what works’ should provide solid evidence to inform the formulation of support programmes and regulative measures that serve:

1. Mainly business-owners
2. Employees of SMEs
3. Local communities and supply chains within which SMEs are embedded
4. All SME stakeholders