2: The Business Organisations

Question 1

Reasons for growth

Answer 1

To increase sales, to increase market share, business reputations increases

Question 2

Reasons against growth

Answer 2

Lose control, may lose personal services, risky, increases workload

Question 3

Methods of expansion

Answer 3

Organic growth and inorganic growth

Question 4

Organic growth

Answer 4

Expanding within the business

Question 5

Inorganic growth

Answer 5

Expansion by working with other businesses. franchises, e-commerce etc

Question 6

Public limited company

Answer 6

Sell shares on the stock exchange

Question 7

Ethical objectives business have

Answer 7

Environmentally friendly, treating workers fairly, treating suppliers fairly

Question 8

Benefits of being ethical

Answer 8

Improve reputation amongst stakeholders

Question 9

Things to consider when Choosing a location

Answer 9

Cost of site, labour costs, transport costs, sale potential, managers preferences

Question 10

Benefits of locating abroad

Answer 10

Low costs, avoids trade barriers, can take advantage of different markets

Question 11

Drawbacks of locating abroad

Answer 11

Language difficulties, transport costs of goods, bad publicity, unethical-paying lower costs, low wages, UK employees lose jobs