2.1 Growing the business

Question 1

business growth

Answer 1

when a business increases the scale of its operations

Question 2

how to achieve business growth

Answer 2

internal and external growth

Question 3

methods of internal growth

Answer 3

introducing new products
entering new markets

Question 4

research and development

Answer 4

reserach into new products or process ad developing the ideas that are generated from research

Question 5

innovation

Answer 5

act of creating new products or processes

Question 6

methods of external growth

Answer 6

mergers
takeovers

Question 7

merger

Answer 7

when two or more businesses join together to operate as one business

Question 8

takeover

Answer 8

when one business buys another business and incorporates it into their own business

Question 9

multinational

Answer 9

a business with operations in more than one country

Question 10

sources of finance for growing business

Answer 10

internal and external sources

Question 11

internal sources of finance

Answer 11

retained profit
selling assets

Question 12

assets

Answer 12

items owned by a business

Question 13

external sources of finance

Answer 13

loan capital
share capital

Question 14

dividends

Answer 14

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

Question 15

stock market flotation

Answer 15

process of changing a business to a PLC by issuing shares for sale on a stock exchange

Question 16

aims and objectives change according to

Answer 16

market conditions
technology
performance
legislation
internal reasons

Question 17

degree of competition

Answer 17

number and size of businesses competing in a particular market

Question 18

culture

Answer 18

general beliefs of a business

Question 19

retrenchment

Answer 19

when a business downsizes the scale of its operations by reducing the number of employees or closing less profitable branches

Question 20

organisational structure

Answer 20

way in which the workforce is organised

Question 21

product portfolio

Answer 21

the range of goods and services offered by any one business

Question 22

ways globalisation affects businesses

Answer 22

imports
exports
business locations

Question 23

barriers from engaging in international trade

Answer 23

tariffs
trading bloc

Question 24

tariff

Answer 24

a tax imposed on imports and exports

Question 25

protectionist measure

Answer 25

an action taken by a government to reduce the flow of imports into the country

Question 26

trading bloc

Answer 26

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

Question 27

how businesses compete internationally

Answer 27

changing marketing mix
using e-commerce and internet

Question 28

localise

Answer 28

adapt to suit the local area needs

Question 29

trade-off

Answer 29

a balance between two different or opposing objectives

Question 30

profit margin

Answer 30

the proportion of revenue left over after costs have been deducted

Question 31

green audit

Answer 31

a detailed review of a business’s impact on the environment

Question 32

sustainability

Answer 32

acting to ensure the natural resources are used responsibly

Question 33

finite resource

Answer 33

a resource that does not renew itself to meet society’s consumption of the resource quickly enough

Question 34

pressure group

Answer 34

a group of people joined together to try to influence a business for a particular cause

Question 35

boycott

Answer 35

refusing tp buy from or interact with a particular business

Question 36

viral marketing

Answer 36

using online channels to spread a campaign message by encouring to share with friends

Question 37

lobbying

Answer 37

trying to influence the government or other organisations