Y12 - Business Growth

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

• Increased costs

• Increased sales

• Increased competition

• Increased chance of failure

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

Kraft took over Cadbury in 2010. Which type of business growth is this an example of?

• Internal (organic) growth

• External growth

Some mergers / takeovers in the UK are blocked by the government (CMA). This is because mergers / takeovers can lead to a lack of choice for consumers. A lack of competition between businesses in a market could lead to...

• Lower prices and better customer service

• Higher prices and worse customer service

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

• A chocolate producer buys another chocolate producer

• A chocolate producer buys a cocoa farm

• A chocolate producer buys a chain of coffee shops

• A chocolate producer buys a car producer

Which of the following best describes the term 'diversification'?

• To join with a business in the same industry as you

• To join with a business that can supply you with raw materials

• To join with a business that sells something similar to you

• To join with a business in a completely unrelated industry

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

Expanding the business by introducing new product lines is an example of what type of growth?

• Internal growth

• External growth