business growth Flashcards
key parts to development
What are economies of scale?
Cost advantages that businesses obtain due to the scale of operation, resulting in a reduced cost per unit as output increases.
What are diseconomies of scale?
The point where a company grows so large that the costs per unit increase.
What is organic growth?
Growth achieved through expanding the business’s own operations rather than through mergers and acquisitions.
What is inorganic growth?
Growth achieved through mergers, acquisitions, or takeovers.
What is franchising?
A method of business expansion where a franchisor licenses its operations—typically including its brand, business model, and support—to a franchisee.
What is a merger?
When two companies combine to form a new entity.
What is an acquisition?
When one company takes over another.
What is a joint venture?
A business arrangement where two or more parties agree to pool their resources for a specific task or project.
What is diversification?
A strategy of increasing sales by introducing new products into new markets.
How does innovation contribute to business growth?
By developing new products, improving processes, and staying ahead of competitors, leading to increased market share and revenue.
