Business growth Flashcards
Define Business Growth
A business increases the scale of operation through internal/external growth
Define external growth
Occurs when a business expands by merging with another business. Can be called take over
Define enterprise
A business
Define Entrepreneurs
A business person who sets up a business or multiple
Name one disadvantage of internal growth
One of these or a valid reason:
- may be dependent on market growth
- hard to build a market share
- slow growth
- finances may be hard to manage
- failure leads to serious business damage
Define Internal growth
When a business expands alone by bringing out new products or markets, also called organic growth
Define Obselete
No longer produced due to less or no use/need
Define E-Commerce
Interaction online, e.g. Online shops
Name one advantage of Internal growth
One of these examples or valid ones:
- less risk than external
- financed through internal funds
- builds on existing strength and structure
- cheap
- allows growth at a good pace
Define Consumer
A person who buys goods for personal use, e.g. Customers
Name one advantage of External growth
One of these or a valid reason:
- fast way for business growth
- reduces competition
- greater market share
- may lead to better business or more sales
Define M-Commerce
Commercial interaction usually by mobile phone
Name one disadvantage of External growth
- more expensive
- greater risk
- difficult to control
- hard to combine management styles
Define Partnerships
Ran by 2-20 people, joint responsibility, deeds state how much of the business they own
Define sole trader
Smallest type of business owned by one person, owner is personally responsible, after tax all profit may be kept
