2.1 Business Growth Flashcards
What is a internal growth (organic)?
Internal growth is when a business expands from within.
For example opening new stores or launching new products.
What is external growth (inorganic)?
External growth is when a
What is innovation?
The act of creating new products or processes.
What is E-commerce?
Using the internet to carry out business transactions.
What is a takeover?
When one business buys another business and incorporates it into their own business.
What is a PLC?
An incorporated business that can sell shares to the public. (Also known as a public limited company)
What is multinational?
A business with operations in more than one country.
What is an asset?
Items owned by a business, such as premises, equipment or stock
What is interest?
The cost of borrowing, or the percentage of the amount of money borrowed that must be repaid in addition to the original amount borrowed.
What does the term ‘secured’ mean?
Guaranteed, because if the business fails to pay back the money, the bank can take the asset and sell it.
What is a dividends?
A percentage of the business profits that is paid to shareholders as a reward for their investment in the business.
What is stock market flotation?
The process of changing a business into a plc by issuing shares for sales on a stock exchange.
What is stock exchange?
A place where shares in PLC’s can be bought and sold
What is globalisation?
When business operate on an international scale and gain international influence or power
What is an import?
The flow of goods and services into a country from another country
What are exports?
The flow of goods and services out of a country to another country.
What does the term ‘domestically’ mean?
At home or within a business’s home country.
What is a tariff?
A tax imposed on imports or exports
What is a protectionist measure?
An action taken by the government to slow down the amount of imports coming into the country.
What is a trading bloc?
A group of countries that agree to act together to promote trade between themselves
What does ‘localise’ mean?
Adapt to suit the local area and it’s needs, particularly in terms of culture, language or geographical location.
What is a stakeholder?
Anyone who has an interest in the activities of a business, such as its workers, its suppliers and the government.
What is profit margin?
The proportion of revenue left over after costs have been deducted.
What is green audit?
A detailed review of a business’s impact on the environment, either conducted by the business itself or by an independent organisation.
What is sustainability?
Acting to ensure that natural resources are used responsibly, to protect the environment for future generations.
What is finite resource?
A resource that does not renew itself quickly enough to meet society’s consumption of that resource, such as oil and natural gas.
What is a boycott?
Refusing to buy from or interact with a particular business or organisation
What is lobbying?
Trying to influence the government or other organisations.
What is hierarchical structure?
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
