Why Business Remain Small Flashcards
Why business decide to remain small?
Not enough capital, to avoid diseconomies of scales, owner does not want to grow, bhsiness is in a ‘niche’ market
Internal growth
Opening new outlets
External growth
When one business buys the shares of another business and takes over this business
What is diseconomies of scale?
Increase in the unit cost of production
What is CSR?
Corporate sosial reponsibility it is when the business facus not only the shareholders but also the stakeholders
Whats PDI?
Personal disposable income, people who work will revieve a salary or wage
How to calculate PDI?
Calculate the Net Pay(salary minus tax) then minus hoe much your needs
How to know if business is succesful?
- Business makes profit
- business increase its market shares
- business survives its first year
- business sales increase
Break even analysis
Level of sales when the business will make no profit or loss
