1.7 Expanding

Question 1

Franchise

Answer 1

occurs when a franchisor sells the rights to its product to a franchisee: this is usually in return for a fee and percentage of turnover

Question 2

franchisee

Answer 2

buys a franchise usually in a return for a fee and percentage of turnover

Question 3

franchisor

Answer 3

sells a franchise usually in return for a fee and percentage of turnover

Question 4

internal growth

Answer 4

expansion of a business thrugh selling more of its own products

Question 5

exterrnal growth

Answer 5

expansion of a business through joining with another business

Question 6

market capitalisation

Answer 6

the measurement of all of a companies shares

Market price of share x number of shares

Question 7

E-commerce

Answer 7

the act of buying or selling a products on the internet using an electronic system

Question 8

outsourcing

Answer 8

when a business uses another business to produce for them

Question 9

merger

Answer 9

When teo or more businesses join together to form a business

Question 10

takeover

Answer 10

when one business. buys control of another business

Question 11

economies of scale

Answer 11

occurs when a businesses unit cost of production fall as its output rises and the business expands

Question 12

diseconomies of scale

Answer 12

occurs when the cost per unit increases as the business expands