2.1 Flashcards
1
Q
What is internal growth also known as ?
A
Organic growth
2
Q
What is external growth also known as ?
A
Inorganic growth
3
Q
What are the benefits to internal growth?
A
- less risk
- can be financed through internal funds
- business grows at sensible rate
4
Q
What are the negatives to internal growth?
A
- hard to build market share if business is already a leader
- slow growth
5
Q
Give examples of internal growth?
A
- opening new outlets
- overseas expansion
- new products
6
Q
Give examples of external growth?
A
- merger
- takeover
7
Q
What are factors that effect a business’ method of growth?
A
- business size
- nature of product
- financial position
8
Q
What is the benefit to opening new outlets?
A
- access to wider markets
- increases brand awareness
9
Q
What are the benefits to external growth?
A
- reduced competition
- more knowledge + skills
- cost saving
10
Q
What are the disadvantages to external growth?
A
- staff redundancies
- resentment
11
Q
Why do business objectives change?
A
- technology
- legislation
- business performance
12
Q
What are imports?
A
Good or services bought from overseas
13
Q
What are examples of imports?
A
- goods we don’t grow/make
- goods that require low skilled labour
- goods that require high skilled labour
14
Q
What are exports?
A
UK produced goods or services bought by an overseas customer
15
Q
Why might a business change location?
A
- to reduce tariffs
- to reduce costs
- to gain more skills
