Business Growth (GCSE Business)

Which of the following is most likely to be a benefit of business growth?

• Increased costs

• Increased sales

• Increased competition

• Increased chance of failure

Three possible benefits of growing the business are

• increased costs

• Larger potential profits

• Benefit from bulk buying discounts

• Security for the future of the business

As businesses grow in size, they usually benefit from 'economies of scale' - what does this mean?

• Lower total costs

• Lower average costs per unit

• Higher total costs

• Higher average costs per unit

Internal growth is also known as

• Merger

• Sales maximisation

• Organic growth

• Inorganic growth

Which of the following is NOT a method of internal (organic) growth?

• Increasing output

• Gaining new customers

• Developing new products

• Merging with / taking over another business

Dyson started by selling vacuum cleaners...they now sell hand dryers, washing machines, and fans. Which type of business growth is this an example of?

• Internal (organic) growth

• External growth

The first Tesco store was built in London. Tesco have since opened stores all accross the UK and in other countries. Which type of business growth is this?

• Internal (organic) growth

• External growth

Which two are examples of organic growth?

• When two businesses agree to join together

• When a business expands overseas

• When a business acquires a controlling interest in another business

• When one business buys another business

• When a business launches a new product

Three possible disadvantages of Organic growth are

• increased sales can increase market share

• opening lots of stores or taking on new staff is very costly

• Long period between investment and return on investment

• it is a slow method of growth

Which best describes growth by expanding overseas? When a business:

• Finds new customers to buy its products in its domestic market

• Purchases another business in its home country

• Finds a new market in another country

• Invests heavily in research and development