Expanding The Business

Question 1

Expansion

Answer 1

The process of a firm getting bigger

Question 2

Organic(internal) growth

Answer 2

Involves expansion from without business, for example by expanding the product range, or number of business units and location

Question 3

Franchising

Answer 3

A business sells another business the right to use it’s name and sell it’s products

Question 4

Franchise

Answer 4

The business that sells the right to use it’s name

Question 5

Franchisee

Answer 5

The person/business that has purchased a franchise

Question 6

Franchisor

Answer 6

The person selling the franchise

Question 7

E-Commerce

Answer 7

The buying and selling of a product using the internet

Question 8

Outsourcing

Answer 8

When a business uses other businesses to carry out certain tasks, for example production

Question 9

Merger

Answer 9

Occurs when two businesses join to form a larger new business

Question 10

Takeover

Answer 10

Occurs when an existing business expands by buying more than half the shares of another business