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WorksheetsY12 - Business Growth
Total questions: 23
Worksheet time: 16mins
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
What growth type when a business grows using its own resources to increase scale of its operations?
Vertical
External
Organic
Lateral
When two firms agree to integrate their operations called ________
Merger
Acquisition
Name the type of integration. A major producer of automobiles buys a large rental car company...
Horizontal
Vertical forwards
Conglomerate
Vertical backwards
Name the type of integration. A life insurance company merges with a major telecommunications company...
Horizontal
Vertical forwards
Conglomerate
Vertical backwards
Name the type of integration. A large producer of business and personal computers buys a company that produces computers for the home market...
Horizontal
Vertical backwards
Conglomerate
Vertical forwards
Name the type of integration. A natural gas producer buys a company that owns natural gas pipelines that transport gas to major urban areas...
Horizontal
Vertical forwards
Conglomerate
Vertical backwards
Name the type of integration. An automobile manufacturer that buys a football team...
Horizontal
Vertical forwards
Conglomerate
Vertical backwards
When a company expands by purchasing and controlling the direct distribution or supply of its products
Horizontal integration
Vertical backward integration
Vertical forward integration
Conglomerate integration
Internal economies of scale are those that
Result from changes in production techniques
Increase due to the growth of the industry as a whole
Generate lower per unit production costs
Reduce production costs in the short run
Large firms can afford to advertise and sell in larger quantities to develop brand loyalty. This is an example of
Purchasing economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Large firms can negotiate better interest rates on loans; this reduces the costs of borrowing for larger companies. This is an example of
Financial economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Large firms can buy raw materials in bulk at more favourable rates. This is an example of
Purchasing economies of scale
Technical economies of scale
Managerial economies of scale
Marketing economies of scale
Risk bearing economies of scale
Which of the following EOS refers to improving the production process?
Financial
Managerial
Technical
Purchasing
