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Which of the following is not an effective way of measuring the size of a business?

• number of employees
• value of sales
• value of capital invested
• profit level

Which of the following options is most likely to be a reason why a firm may wish to expand?

• To keep control of the business
• To increase the level of profits the firm will make
• To encourage competition
• To avoid publicity

Revenue definition is........

• The total value of all long-term finance invested in the business

• Sales of the business as a proportion of total market sales

• Total value of sales made by a business in a given time period

• The total value of a company's issued shares

Sales of the business as a proportion of total market sales

• Market capitalisation

• Market share

• Revenue

• Capital employed

Market share =

• (total sales of business/ total sales of industry) x 100

• (Total sales of industry/ total sales of business) X 100

• Total sales X 10

Tick the ways that the government can help small businesses.

• Increase profit tax

• Workshops

• loan gurantee schemes

• marketing

A merger is

• Two business agreeing to becoming one new business

• One business buying shares in another business

• One business taking over control of another business

• Two businesses co operating with each other.

Advantages of a Merger might be

• Better deals because of increased order size, bulk-buying discounts etc.

• Increased revenue and market share. Increased size of the combined company increases market power and ability to set higher prices

• To gain resources. If one company has resources (e.g. technology) that another one wants then a merger may be the most cost effective way to get access to those resources

• Slow growth so can be easily managed

Which option best describes the term takeover?

• When two firms agree to join together to make one new business

• When a business finds a new market in another country

• When one business purchases another business

• When a business brings something new to the market

Internal or external growth?

A restaurant opens another restaurant in a different city

• internal

• external