growth Flashcards
1
Q
what are the advantages of internal growth
A
less risky
more easily manager
2
Q
what are the disadvantages of internal growth
A
slower
can be dependant on the state of the market
3
Q
what are the advantages of being a franchisor
A
growth is funded by franchisees which helps cash flow and gearing
not much risk as franchisees have liability of their own stores
4
Q
what are the disadvantages of being a franchisor
A
you don’t get the full profits of the stores
loss of control and franchisees can end u giving the business a bad name
5
Q
what is external growth
A
is when a business grows by joining another business, if this involves a merger or takeover it is called integration
6
Q
what are the advantages of mergers
A
combines the strengths of two different companies
