2.1 Flashcards
1
Q
what are 3 ways a business can internally expand?
A
launch new products
open new stores
increase production
2
Q
what is external expansion?
A
business takeovers or mergers
3
Q
what are 3 benefits of external expansion?
A
diversify risk
rapid expansion
reduces competition
4
Q
what are some disadvantages of external expansion?
A
tension
complexity
demotivated employees (new management)
5
Q
what are 3 internal sources of finance?
A
retained profit
selling assets
personal savings
6
Q
what are 3 external sources of finance?
A
bank loans
overdrafts
share capital (selling shares)
7
Q
what are 3 drawbacks of globalisation?
A
more compeition
ethical issues
fluctuating global economy
8
Q
A
