2020-21 Higher BM Revision

Which of these are NOT a benefit of operating as a Multinational Organisation ?

• Increased Competition from different global markets

• Organisations become larger and therefore cannot be taken over

• Can increases sales and profit

• Can take advantage of Government Grants to locate in certain countries

Which of these are NOT a benefit of operating as a Multinational Organisation ?

• Can take advantage of economies of scale

• Can employ cheaper staff which will result in greater profitability

• They must deal with different taxation rates and systems

• May help avoid legal restrictions in the organisation’s own country which could allow them to sell/produce their products abroad

Which of these are a benefit of operating as a Multinational Organisation ?

• Changes in exchange rates can increase costs of trading for them

• Could allow for tax advantages which will increase profitability

• Duplication of resources ie websites to cater for different languages

• Language barriers exist across different regions and countries

_{A franchise is a business agreement that allows the use of an established business (brand) name and to sell their products or services}

• True

• False

The person who owns the trading name of the business.

• Franchiser

• Franchisee

The person that buys the right to trade then manages and runs the business.

• Franchiser

• Franchisee

Who is this an ADVANTAGE for?

"Extra support may be offered e.g. industry knowledge and training"

• Franchiser

• Franchisee

Who is this an ADVANTAGE for?

"Provides a steady cash flow from royalty payments based on profits of the franchised business"

• Franchiser

• Franchisee

Who is this an ADVANTAGE for?

"Reduced risk as the brand is already established with an existing customer bases"

• Franchiser

• Franchisee

Who is this an ADVANTAGE for?

"Reduced marketing costs e.g. national advertising by HQ"

• Franchiser

• Franchisee