Topic 2.1

Question 1

Internal / Organic growth

Answer 1

Occurs when a business expands by itself, by bringing out new products or entering new markets

Question 2

External / Inorganic growth

Answer 2

Occurs when a business expands by joining with another business

Question 3

Takeover

Answer 3

When one business obtains control of another business by buying more than 50% of its share capital

Question 4

Merger

Answer 4

When 2 business agree to come together to form 1 large business

Question 5

Globalisation

Answer 5

Process by which businesses operate on an international scale

Question 6

Tariffs

Answer 6

Taxes imposed on imported goods

Question 7

Trade blocs

Answer 7

Governments of different countries agreeing to act together to promote trade amongst themselves

Question 8

Protectionism

Answer 8

Attempt by a country to impose restrictions on the open trade market in goods and services to protect domestic goods

Question 9

Ethics

Answer 9

Doing the right thing in terms of business

Question 10

Ethical considerations

Answer 10

Factors relating to green issues

Question 11

Sustainability

Answer 11

Whether or not a resource will inevitability run out in the future