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Worksheets1.5 IB BM Growth ad Evolution
Total questions: 16
Worksheet time: 9mins
When a business increases its size of operations and becomes more cost efficient, this is known as economies of scale.
True
False
an acronym standing for social, technological, economic, environmental, political, legal and ethical external factors that impact on business; it refers to a framework for analysing the external environmental factors affecting business objectives and strategies.
(a)
Diseconomies of scale occur if a firm grows beyond its ability to operate efficiently.
True
False
Which is an economic factor for a STEEPLE analysis?
exchange rate
weather and climate of the region
type of government that exists
law influencing business activity
The ability of a large business to negotiate lower rates of interest on loans with commercial banks is an example of purchasing economies of scale
True
False
Being unable to offer a more specialized and exclusive service to customers is a disadvantage of being a business that operates on a large scale .
True
False
Ethics is one component or factor of a STEEPLE analysis
True
False
When one business buys out another business to become a single but larger company, this is known as a merger.
True
False
Purchasing economies of scale are when suppliers offer substantial discounts for large orders
True
False
Diseconomies are related to the management problems of trying to control and direct an organization with many thousands of workers, in many separate divisions, often operating in several different countries.
True
False
Which are internal diseconomies of scale?
bureaucracy
alienation of the Workforce
location
specialist labor
Which are benefits of a small organization?
Often able to adapt quickly to meet changing customer needs
May be able to set prices that other firms have to follow
Can be managed and controlled by the owner(s)
May be diversified in several markets and products, so risks are spread
Vertical integration involves two companies at different levels in a supply chain.
True
False
Horizontal integration involves two companies at different levels in a supply chain. Two types of horizontal integration are backward and forward integrations.
True
False
When a company buys over 50% of the shares of another company and becomes the controlling owner – often referred to as ‘acquisition
merger
takeover
joint venture
franchise
Strategic alliances are two or more businesses who agree to work closely together on a particular project and create a separate business division to do so.
True
False
