Business Growth Flashcards
1
Q
What does business growth mean ?
A
An increase in profits due to the company expanding and selling more products
2
Q
What can business growth cause an owner ?
A
Struggle maintaining control of the business
Averge unit cot increases
3
Q
How can a business be measured ?
A
By total number of employees
Total annual revenue
Value of a business
4
Q
Ways of organic growth ?
A
Increasing customers
Expand into other markets
Improve marketing
Develop new products
5
Q
Risks of outsourcing ?
A
Not being delivered on time
No control over quality
6
Q
Types of exsternal growth ?
A
Merger
Takeover
7
Q
What is economies of scale ?
A
Where a business has lower unit costs due to it size, so they can buy raw materials cheap
8
Q
Whats the benefits of a merger ?
A
Increase market share
Increase financial capacity
