business growth 2.1.1

Question 1

what is internal/organic growth

Answer 1

when a business expands from within

Question 2

what is external/inorganic growth

Answer 2

when a business grows by joining another business

Question 3

what could lead to internal growth

Answer 3

innovation + investment in research and development + adapting to new markets + using technology to your advantage

Question 4

name disadvantages of investment in research and development

Answer 4

-expensive
- hard to enter the market with a new product

Question 5

what is a merger

Answer 5

where two businesses become integrated to form one business under joint ownership

Question 6

what is a takeover

Answer 6

where a business buys another business

Question 7

how can you expand internally by changing the marketing mix

Answer 7

-opening more physical stores
-increase in product range
-increase in promotional spend

Question 8

how can businesses expand internally by taking advantage of technology

Answer 8

using e-commerce (buying and selling goods online through websites) and m-commerce (buying and selling goods and services through mobile devices) to develop sales and markets

Question 9

name two internal sources of finance

Answer 9

-retained profit,selling assets

Question 10

name two external sources of finance

Answer 10

loan capital,share capital,