People In A Business

Question 1

Growth in a business

Answer 1

The increase of size and status in a business

Question 2

Why people want growth

Answer 2

To expand their business

Question 3

Merger

Answer 3

Two companies coming together

Question 4

Organic

Answer 4

The growth of an individual business- internal

Question 5

Inorganic

Answer 5

External growth- links to merger and takeover

Question 6

Benefit of organic growth?

Answer 6

Less risk than external growth and allows the business to grow at a more sensible rate

Question 7

The four types of intergration

Answer 7

Forward vertical, horizontal, backward vertical, horizontal

Question 8

Why franchising is a good method of growth

Answer 8

It can help them grow nationally and internationally

Question 9

How stakeholders are affected by Growth

Answer 9

They gain more money than they put into the business, causing them to have brought a successful share

Question 10

What is an ltd

Answer 10

Shares can only be brought by invitation only. Limited liability

Question 11

What is a plc

Answer 11

Shares can be brought by anyone on the stock exchange- usually a large business. Public liability

Question 12

What is Location

Answer 12

Where a business is located

Question 13

Factors that influence the location of a business

Answer 13

Nearby transport, competition, population density

Question 14

Why is location important

Answer 14

If they are in a location with low population there will be low numbers of customers. Limiting the business’ possible growth.

Question 15

Aims and objectives ?

Answer 15

An aim is what they want to do, the objective is how they’re going to achieve it

Question 16

Why do businesses have aims and objectives

Answer 16

They are a way of having something to work towards

Question 17

Forward vertical intergration

Answer 17

Forward integration is a business strategy that involves a form of vertical integration whereby business activities are expanded to include control of the direct distribution or supply of a company’s products. This type of vertical integration is conducted by a company moving down the supply chain.

Question 18

Backward vertical intergration

Answer 18

Backward integration is a form of vertical integration that involves the purchase of, or merger with, suppliers up the supply chain. Companies pursue backward integration when it is expected to result in improved efficiency and cost savings.

Question 19

PUblic limited

Answer 19

A public limited company (PLC) is the legal designation of a limited liability company which has offered shares to the general public and has limited liability.

Question 20

Private limited

Answer 20

A private limited company, or LTD, is a type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 50 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when it incorporates.