3.2 - Business growth

Question 1

Give 3 problems arising from growth

Answer 1

• diseconomies of scale
• poor internal communication
• overtrading

Question 2

Internal & External EoS

Answer 2

https://www.tutor2u.net/economics/reference/what-are-the-differences-between-internal-and-external-economies-of-scale

Question 3

Diffirentiate between merger, joint venture & takeover

Question 4

Define synergy

Answer 4

The interaction or cooperation of two or more organizations or other agents to produce a combined effect greater than the sum of their separate effects:
“the synergy between artist and record company”