1.7 Expaninding A Bussiness

Question 1

Internal growth

Answer 1

It is orgainic growth and occurs when a bussiness gets bigger by selling more of its products.

Question 2

External growth

Answer 2

Occurs when a bussiness gets bigger by joining another bussiness

Question 3

Market captalisation

Answer 3

Company measures the value of all its shares

Market captalistation=market price x the number shares

Question 4

Franchise

Answer 4

Franchisisor sells the rights to its product to the franchisee, return for a fee or percentage

Question 5

Franchisee

Answer 5

Buys a franchise usally in reutrn for a fee or percentage of turnover

Question 6

Franchisor

Answer 6

Sells a franchise usally in return for a fee

Question 7

E-commerce

Answer 7

It is when you buy or sell something on the internet

Question 8

Outsourcing

Answer 8

When a bussiness uses another bussiness to produce for it

Question 9

Merger

Answer 9

When a bussiness joines togther with two or more other bussiness to form a new bussiness

Question 10

Takeover

Answer 10

When one bussiness buys control of another one

Question 11

Economies of scale

Answer 11

Bussiness unit of productions fall as its output rises and the bussiness expandeds

Question 12

Diseconnmies of scale

Answer 12

Cost of per unit increase as a bussiness expand