Revision

Question 1

What is a public limited company ( plc )

Answer 1

It is a limited liability company whose shares may be freely sold and traded to the public (although a plc may also be privately held, often by another plc), with a minimum share capital of £50,000 and usually with the letters PLC after its name.

Question 2

Internal growth

Answer 2

Internal growth is growth that is from within a business , like expanding using money coming from the business

Question 3

External growth

Answer 3

External growth is when a business grows from outside of the business , like loans etc .

Question 4

Merger ( of a business )

Answer 4

This is when two businesses merge together to create a bigger business .

Question 5

Takeover. ( of a business )

Answer 5

This is where a business buys out another business completely taking them over .

Question 6

Different sources of finance.

Answer 6

Bank loans 
Personal investment 
Love money ( from loved ones ) 
Investments from others from outside the business . 
Profit from customers.

Question 7

Examples of internal growth

Answer 7

Expanding from within

Question 8

Examples of external growth

Answer 8

Loans

Question 9

Why would a business merge with another business ?

Answer 9

A business may want to merge with another business to either create allies within the market and or to reduce the amount of competition and make themself a bigger competitor.

Question 10

Why would a business takeover another business ?

Answer 10

A business may want to takeover another business to eliminate competition , and become a higher , more competitive business .

Question 11

Ethics of a business

Answer 11

Businesses apart from profit aim to satisfy customers by reaching ethic requirements .

Question 12

Examples of ethics

Answer 12

Fair trade

How the business acts and behaves