3.1 Business growth & 3.2 Business objectives

Question 1

a) Reasons why some firms tend to remain small and why
others grow

Question 2

b) Significance of the divorce of ownership from control:
the principal-agent problem

Question 3

c) Distinction between public and private sector
organisations

Question 4

d) Distinction between profit and not-for-profit
organisations

Question 5

a) How businesses grow:
o organic growth
o forward and backward vertical integration
o horizontal integration
o conglomerate integration

Question 6

b) Advantages and disadvantages of:
o organic growth
o vertical integration
o horizontal integration
o conglomerate integration

Question 7

c) Constraints on business growth:
o

Answer 7

size of the market
o access to finance
o owner objectives
o regulation

Question 8

a) Reasons for demergers

Question 9

a) Reasons for demergers
b) Impact of demergers on businesses, workers and
consumers

Question 10

a) Different business objectives and reasons for them:
o profit maximisation
o revenue maximisation
o sales maximisation
o satisficing

Question 11

b) Diagrams and formulae to illustrate the different
business objectives:
o profit maximisation
o revenue maximisation
o sales maximisation

Question 12

size and types of firms APPLICATION

Question 13

factors influencing business objectives

Question 14

business objectives application

Question 15

prof. max EVALUATION

Question 16

rev. max. EVALUATION

Question 17

Sales max. EVALUATION