Growth

Question 1

what is growth

Answer 1

after a setting up a business they will aim to grow. to ‘grow’ means to make the business larger. not all organisations will aim to grow. local government organisations, for example, aim instead to serve the local community. some Ltds like to stay small as their customers like the personal touch that bigger franchise and multinationals cannot offer.

Question 2

1. an advantage of growth

Answer 2

reduces the risk of failure - bigger businesses with more products or branches can spread the risk and avoid ‘putting all their eggs in one basket’

Question 3

2. advantage of growth

Answer 3

increase profits - more products to sell or more stores to sell them will equal more sale, and more profits

Question 4

3. advantage of growth

Answer 4

avoids being taken over - bigger businesses aim to buy smaller businesses to control their product, outlets and customers. by growing larger a business an b the ‘big fish in the pond’ and avoid being eaten itself.