Year 8A-E Standard Classwork

Organic growth means:

• Horizontal growth

• Vertical growth

• Internal growth

• External growth

Internal sources of finance include which of the following?

• Retained profit and selling assets

• Selling assets and venture capital

• Retained profit and loan (debt)

• Selling shares and loans (debts)

Which is not a reason to grow a business?

• To create diseconomies of scale

• Earn higher profits for shareholders

• Increase market share

• Increase revenues

Which would be a benefit of vertical integration?

• More sales

• More control over supply chain

• Less chance of economies of scale

• Higher revenues

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 growth (organic)

• External growth

How can we measure the size of a business?

• The quality of their adverts

• The amount they raise for charity

• Sales revenue

• The amount they spend on advertising

A problem a business may experience when they decide to grow:

• More sales

• A lack of finance

• A lack of expertise

• Improved reputation

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

• Merging with or taking over another business

• Increasing sales by introducing a new product

• Increasing sales by increasing the number of employees to satisfy consumer demand

• Opening another store in a different part of the UK

A definition of economies of scale is...

• A reduced unit cost gained from an increase in production

• Taking over suppliers

• Diversifying by launching new products

Which of the following is an example of a horizontal merger/takeover?

• A chocolate producer buys another chocolate producer

• A chocolate producer buys a car producer

• A chocolate producer buys a chain of coffee shops

• A chocolate producer buys a cocoa farm