2.1 Business Growth

Question 1

What is a internal growth (organic)?

Answer 1

Internal growth is when a business expands from within.

For example opening new stores or launching new products.

Question 2

What is external growth (inorganic)?

Answer 2

External growth is when a

Question 3

What is innovation?

Answer 3

The act of creating new products or processes.

Question 4

What is E-commerce?

Answer 4

Using the internet to carry out business transactions.

Question 5

What is a takeover?

Answer 5

When one business buys another business and incorporates it into their own business.

Question 6

What is a PLC?

Answer 6

An incorporated business that can sell shares to the public. (Also known as a public limited company)

Question 7

What is multinational?

Answer 7

A business with operations in more than one country.

Question 8

What is an asset?

Answer 8

Items owned by a business, such as premises, equipment or stock

Question 9

What is interest?

Answer 9

The cost of borrowing, or the percentage of the amount of money borrowed that must be repaid in addition to the original amount borrowed.

Question 10

What does the term ‘secured’ mean?

Answer 10

Guaranteed, because if the business fails to pay back the money, the bank can take the asset and sell it.

Question 11

What is a dividends?

Answer 11

A percentage of the business profits that is paid to shareholders as a reward for their investment in the business.

Question 12

What is stock market flotation?

Answer 12

The process of changing a business into a plc by issuing shares for sales on a stock exchange.

Question 13

What is stock exchange?

Answer 13

A place where shares in PLC’s can be bought and sold

Question 14

What is globalisation?

Answer 14

When business operate on an international scale and gain international influence or power

Question 15

What is an import?

Answer 15

The flow of goods and services into a country from another country

Question 16

What are exports?

Answer 16

The flow of goods and services out of a country to another country.

Question 17

What does the term ‘domestically’ mean?

Answer 17

At home or within a business’s home country.

Question 18

What is a tariff?

Answer 18

A tax imposed on imports or exports

Question 19

What is a protectionist measure?

Answer 19

An action taken by the government to slow down the amount of imports coming into the country.

Question 20

What is a trading bloc?

Answer 20

A group of countries that agree to act together to promote trade between themselves

Question 21

What does ‘localise’ mean?

Answer 21

Adapt to suit the local area and it’s needs, particularly in terms of culture, language or geographical location.

Question 22

What is a stakeholder?

Answer 22

Anyone who has an interest in the activities of a business, such as its workers, its suppliers and the government.

Question 23

What is profit margin?

Answer 23

The proportion of revenue left over after costs have been deducted.

Question 24

What is green audit?

Answer 24

A detailed review of a business’s impact on the environment, either conducted by the business itself or by an independent organisation.

Question 25

What is sustainability?

Answer 25

Acting to ensure that natural resources are used responsibly, to protect the environment for future generations.

Question 26

What is finite resource?

Answer 26

A resource that does not renew itself quickly enough to meet society’s consumption of that resource, such as oil and natural gas.

Question 27

What is a boycott?

Answer 27

Refusing to buy from or interact with a particular business or organisation

Question 28

What is lobbying?

Answer 28

Trying to influence the government or other organisations.

Question 29

What is hierarchical structure?

Answer 29

Hierarchy is a way to structure an organisation using different levels of authority and a vertical link, or chain of command, between superior and subordinate levels of an organisation