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WorksheetsBusiness Growth Worksheet
Total questions: 72
Worksheet time: 36mins
What is one reason why businesses want to grow?
To increase costs
To negotiate better deals and lower costs
To reduce profits
To limit product range
Fill in the blank: A wider range of products increases security for a business since they are not relying on ______ product.
one
every
expensive
seasonal
Ensuring supplies and outlets gives businesses control over the ______ of products.
availability
color
price
origin
To prevent competitors gaining an advantage, gaining more control of a market will give a firm an ______ over their competitors.
advantage
disadvantage
obstacle
burden
Which of the following is a benefit of business growth?
Decrease in sales
Increase in market share
Decrease in brand awareness
Higher costs
Fill in the blank: Growth can help a business benefit from economies of ______ (bulk buying).
scale
scope
location
time
What is a merger in the context of external growth?
When one business buys control of another business
When two businesses agree to join together to form one new business
When a business expands by itself
When a business integrates with another at a later stage
What is a takeover in the context of external growth?
When two businesses agree to join together
When a business expands by itself
When one business buys control (at least 51%) of another business
When a business integrates with another at the same stage
Which type of integration occurs when a business integrates with another that operates at the same stage in the supply chain?
Horizontal Integration
Backward Vertical Integration
Forward Vertical Integration
Conglomerate Integration
Which type of integration occurs when a business integrates with another that operates at an earlier stage in the supply chain?
Horizontal Integration
Backward Vertical Integration
Forward Vertical Integration
Conglomerate Integration
Which type of integration occurs when a business integrates with another that operates at a later stage in the supply chain?
Horizontal Integration
Backward Vertical Integration
Forward Vertical Integration
Conglomerate Integration
Which type of integration occurs when a business integrates with others that operate in an unrelated industry?
Horizontal Integration
Backward Vertical Integration
Forward Vertical Integration
Conglomerate Integration
Fill in the blank: Internal growth occurs when a business expands by itself, by bringing out new products or by entering new markets. It is also known as ________ growth.
organic
external
synthetic
acquired
Fill in the blank: External growth occurs when a business expands by joining with another business. It is also known as ________ growth.
inorganic
organic
internal
sustainable
What is research and development in a business context?
Business research into new products or processes and developing the ideas that are generated from research.
A department that only manages company finances.
A process of selling existing products to new markets.
A method of reducing employee numbers to cut costs.
What is an example of Horizontal Integration for a sportswear business?
A) Purchasing/coming together with another sports manufacturer such as ADIDAS
B) Purchasing/coming together with a rubber manufacturer to save costs when making the soles of trainers
C) Purchasing/coming together with a business that sells food such as FIVE GUYS
D) Purchasing/coming together with a retailer on the High Street so they can sell sports wear face to face with customers.
What is an example of Backward Vertical Integration for a sportswear business?
A) Purchasing/coming together with another sports manufacturer such as ADIDAS
B) Purchasing/coming together with a rubber manufacturer to save costs when making the soles of trainers
C) Purchasing/coming together with a business that sells food such as FIVE GUYS
D) Purchasing/coming together with a retailer on the High Street so they can sell sports wear face to face with customers.
What is an example of Forward Vertical Integration for a sportswear business?
A) Purchasing/coming together with another sports manufacturer such as ADIDAS
B) Purchasing/coming together with a rubber manufacturer to save costs when making the soles of trainers
C) Purchasing/coming together with a business that sells food such as FIVE GUYS
D) Purchasing/coming together with a retailer on the High Street so they can sell sports wear face to face with customers.
Which of the following is an example of Forward Vertical Integration for a business?
A car manufacturer opening its own chain of dealerships to sell its cars directly to customers.
A car manufacturer acquiring another car manufacturer to increase market share.
A car manufacturer purchasing a tire company to control supply of tires.
A car manufacturer merging with a food processing company.
Which of the following is an example of Horizontal Integration for a business?
A coffee shop chain acquiring another coffee shop chain.
A coffee shop buying a coffee bean farm.
A coffee shop acquiring a bakery company.
A coffee shop opening its own retail stores to sell coffee beans.
What is one problem a business may face if it grows too quickly through external growth?
Increased flexibility
Communication may be difficult
Lower costs
Fewer competitors
Fill in the blank: The firm is less _______ after rapid external growth, making it slow to meet customer needs.
flexible
profitable
visible
predictable
What is LOAN CAPITAL? Fill in the blank: LOAN CAPITAL is
an amount of money that is borrowed for a fixed period of time at an agreed rate of interest. The total sum (loan + interest) is repaid through regular – usually monthly – payments.
a type of capital that is only used for purchasing fixed assets and never repaid.
money given to a business as a gift with no expectation of repayment or interest.
the profit earned by a company from its regular business operations.
What is SHARE CAPITAL? Fill in the blank: SHARE CAPITAL is
the money raised by selling additional shares in a Private Ltd or Public (Plc) Limited Company. This effectively allows an amount of money to be raised in return for legal part-ownership of the business.
the total value of all assets owned by a company, including buildings and machinery.
the profits distributed to shareholders at the end of each financial year.
the amount of money borrowed by a company from banks or other financial institutions.
What is RETAINED PROFIT? Fill in the blank: RETAINED PROFIT, sometimes known as 'reserves', is __.
previous profit made from successful trading that has been kept within a business, rather than taken out by the owner(s).
the total amount of money borrowed by a business from external sources.
the initial capital invested by the owners to start the business.
the total value of assets owned by the business.
What does SELLING ASSETS mean? Fill in the blank:
when the business sells items they own that are no longer needed, in an attempt to raise finance.
when the business buys new equipment to expand operations.
when the business hires new employees for a project.
when the business takes out a loan from the bank.
Which of the following is NOT an internal source of finance for large businesses?
Personal Savings
Retained Profit
Overdraft
Selling Assets
Which of the following is an external source of finance for large businesses?
Retained Profit
Personal Savings
Share Capital
Selling Assets
What does the word 'limited' indicate in a Public Limited Company?
The company has limited products
The owners have limited liability
The company has limited employees
The company has limited locations
Fill in the blank: Shares of a Public Limited Company can only be sold on the ________ to people or other businesses.
Stock Exchange
Supermarket
Bank
Post Office
A Public Limited Company is incorporated, meaning it has a separate legal existence from the owner.
True
False
Which of the following is a requirement for a Public Limited Company (PLC) in the UK?
Has at least 1 director
Has a minimum of £50,000 share capital
Cannot sell shares to the public
Is not incorporated
Fill in the blank: A PLC must publish its ________.
accounts
minutes
products
employees
Which of the following is NOT an example of a Public Limited Company (PLC)?
Bank
Airline
Media business
Local grocery store
Which of the following is an advantage of Public Limited Companies?
Shareholders have limited liability
Requires a minimum of £50,000 capital
Accounts have to be published
Decisions may take longer
Fill in the blank: Public Limited Companies can raise finance by _______.
selling shares
borrowing from employees
printing their own money
accepting only cash payments
Fill in the blank: Public Limited Companies require a minimum of _______ capital.
£50,000
£10,000
£100,000
£5,000
Which of the following is NOT an advantage of Public Limited Companies?
Shareholders have limited liability
Shares sold publicly
Accounts have to be published
Firm can become very large
What is flotation in the context of Public Limited Companies?
Flotation is the listing of a company's shares on the stock market, allowing anyone to buy the shares, and the price can float freely.
Flotation is the process of merging two companies to increase market share.
Flotation is the act of issuing bonds to raise capital for a company.
Flotation is the process of privatizing a public company by buying back all its shares.
Which of the following is a drawback of flotation?
Provides a huge injection of share capital
Founders may lose control if shareholding falls below 50%
Easier to attract business
Safer source of finance than a bank loan
Flotation can make it easier for a business to attract business from other businesses and consumers.
True
False
What is a business aim? Fill in the blank: A business aim is the _______ / general statement of what the business wants to achieve.
goal
product
location
employee
What is a business objective? Fill in the blank: Business objectives are the stated, _______ targets of how to achieve business aims.
measurable
random
unattainable
vague
temporary
Which of the following is an example of a business objective?
To increase sales by 10% in the next 12 months.
To have a nice office.
To make employees happy.
To be creative.
Which of the following is NOT a typical business aim?
Survive
Grow
Make a profit
Decorate the office
Why might the aims and objectives of a business change? Fill in the blank: Businesses may change their aims and objectives because the company is much _______ than it was or because the external environment in which it operates has changed.
larger
smaller
older
weaker
Fill in the blank: One internal factor that might cause aims and objectives to change is the business's _________
performance
location
weather
competition
Fill in the blank: A change in _________ is an internal factor that might cause aims and objectives to change.
management
weather
government policy
market trends
Fill in the blank: Changes in _________ is an internal factor that might cause aims and objectives to change.
technology
weather
government policy
market trends
Fill in the blank: Actions of _________ is an external factor that might cause aims and objectives to change.
competitors
employees
customers
shareholders
Fill in the blank: Changes in _________ is an external factor that might cause aims and objectives to change.
legislation
weather
internal staff
product packaging
Fill in the blank: Change in _________ conditions is an external factor that might cause aims and objectives to change.
market
internal
personal
technological
Why might Sainsbury’s aims and objectives have changed after their £1.4bn takeover of Argos?
Because the deal created a 'multi-product, multichannel' retailer and increased exposure to non-food items.
Because Sainsbury’s wanted to focus only on food products.
Because Argos was planning to close all its stores immediately.
Because Sainsbury’s was reducing its delivery capabilities.
What does globalisation refer to? Fill in the blank: Globalisation refers to
The process through which everyday life is becoming standardised around the world due to increased integration through trade and culture.
A movement to isolate countries from each other and reduce international trade.
The process of making local traditions more prominent and rejecting foreign influences.
A government policy to restrict the use of technology in daily life.
Which of the following is a cause of globalisation?
Better international transport
Decreased movement of people
Less international agreements
Poor communication technology
Which of the following is a cause of globalisation?
Increased movement of people
Less international agreements
Poor communication technology
Decreased trade
Which of the following is a cause of globalisation?
Better communication technology
Decreased movement of people
Less international agreements
Poor international transport
Which of the following is a cause of globalisation?
More international agreements
Poor communication technology
Decreased movement of people
Less international agreements
Which of the following is considered a global industry?
The Technology Industry
The Farming Industry
The Local Grocery Industry
The Construction Industry
Which of the following is considered a global industry?
The Tourism Industry
The Farming Industry
The Local Grocery Industry
The Construction Industry
Which of the following is considered a global industry?
The Motor Industry
The Farming Industry
The Local Grocery Industry
The Construction Industry
Which of the following is considered a global industry?
The Banking Industry
The Farming Industry
The Local Grocery Industry
The Construction Industry
What is international trade?
The buying and selling of goods and services within a country
The buying and selling of goods and services between countries
The production of goods for domestic use
The regulation of business activities by the government
Which of the following is NOT a potential negative impact of foreign competition as a barrier to international trade?
Job losses
Business closures
Increase in domestic production
Money leaving the domestic economy
Fill in the blank: Governments can create trade barriers to protect ______ businesses.
domestic
foreign
illegal
online
What is a tariff?
A subsidy for exports
A duty, or tax, on either imports from, or exports to, a particular country or group of countries
A ban on all imports
A free trade agreement
Tariffs are designed to make foreign imports relatively more expensive so that domestic consumers will buy ______ of them.
less
more
all
none
Tariffs are designed to make domestically produced goods become relatively ______ so domestic consumers are more likely to buy them.
cheaper
expensive
scarce
unavailable
Which of the following is a disadvantage of tariffs?
They can lead to higher prices for consumers.
They increase international trade.
They always benefit all domestic industries.
They eliminate all trade barriers.
Which of the following is an advantage of tariffs?
They protect domestic industries from foreign competition.
They always lower prices for consumers.
They eliminate the need for government revenue.
They encourage unlimited free trade.
What is a trade bloc?
An agreement between a group of states, regions or countries to reduce or remove trade barriers between them
A single country trading with others
A policy to increase trade barriers
A type of currency union
Which type of trade bloc is described as 'essentially a free trade area for all economic resources (e.g., labour), but with common policies for trade with non-member countries'?
Single Markets
Customs Union
Free Trade Area
Economic Union
