Chapter 4, Business Size, Growth, and external growth Flashcards
1
Q
Business size
A
The EU has a standardized measuring of size based on number of employees, turnover and balance sheet value
2
Q
Factors affecting Business size
A
- Market Size
- Nature of the Product
- Personal Preference
- Ability to access resources
3
Q
Effect of Business size on: Employees
A
- Greater Job security
- may feel remote from decision making
4
Q
Effect of Business size on: Suppliers
A
- regular orders
- large orders
- security
- bullying
5
Q
Effect of Business size on: Local Community
A
- new jobs
- boosts the economy
- pollution
- congestion
6
Q
Effect of Business size on: Shareholders
A
- higher profits, dividends, and share prices
- inflexible
7
Q
Effect of Business size on: Customers
A
- develop new products
- economies of scale means lower prices
8
Q
Organic growth
A
Achieved by increasing firm sales. selling to existing, and new customers
9
Q
Mergers and Acquisitions
A
where two companies merge together to create an even larger one.
10
Q
Joint Ventures
A
an arrangement between two or more business to work together on a particular project.
