expanding a business

Question 1

what are the advantages of a business growing?

Answer 1

increase profit

Question 2

explain why growth is not always a good idea

Answer 2

because it a lot of money and the staff increase doesn’t help the business

Question 3

define organic growth

Answer 3

the business grows by hiring more staff and equipment to increase its output.

Question 4

know the difference between a merger and a takeover

Answer 4

merger is between 2 of the same business like asda and sainsbury
takeover is when you buy a rival

Question 5

define unit cost

Answer 5

Unit costs include all fixed costs, or overhead costs, and all variable costs, or direct material and labor costs.