2.1 (2)

Question 1

What type of growth is inorganic?

Answer 1

External

Question 2

How can companies be innovative?

Answer 2

Investment in R&D

Question 3

List 3 challenges that can arise from overseas expansion:

Answer 3

• Adhering to an unknown market- Logistics- Recruitment- constructing a new management chain

Question 4

List 2 methods of internal growth:

Answer 4

• Diversification- Line extension

Question 5

List the advantages and disadvantages of organic growth:

Answer 5

A: Less risk than externalCan take advantage of economies of scaleD: Limited growthCan be slow

Question 6

List the advantages and disadvantages of inorganic growth:

Answer 6

A: Growth is more rapid Greater market share D: Risky/expensiveCulture/management conflict

Question 7

List 2 internal sources for financing expansion:

Answer 7

Selling assets and retained profit

Question 8

List 2 external sources for financing expansion:

Answer 8

Loan capital and share capital

Question 9

List 5 reasons why a business may change its aims and objectives:

Answer 9

Changes in:- Market conditions- Technology- Performance- Legislation- Management

Question 10

List 3 ways that business aims and objectives may change:

Answer 10

• Focus on survival/growth- Entering or exiting markets- Growing/reducing workforce

Question 11

List 2 different types of integration:

Answer 11

Vertical and horizontal

Question 12

What is globalisation?

Answer 12

Companies operating on an international scale

Question 13

What are imports?

Answer 13

Goods or services purchased from overseas

Question 14

List 2 reasons why goods may be imported into the UK:

Answer 14

-They cannot be produced there-It is cheaper to produce them elsewhere

Question 15

List 2 barriers to international trade:

Answer 15

-Tariffs-Trade blocs

Question 16

What are tariffs?

Answer 16

Taxes imposed on imported goods

Question 17

List 3 impacts of imposing tariffs:

Answer 17

-Protects national firms/products-Increases cost of living-Reduces global trade

Question 18

What is a trade bloc?

Answer 18

An agreement between nations to trade with each other without restrictions, whilst imposing tariffs on others

Question 19

Why may a business compromise on profits to be ethical?

Answer 19

It can improve their long-term reputation

Question 20

What is a pressure group?

Answer 20

An group that seeks to influence the policy, legislation and activities of an organisation

Question 21

How can pressure groups influence business ethics?

Answer 21

By threatening their image, which in turn forces them to take ethical considerations into account

Question 22

List 2 advantages to a business of being ethical:

Answer 22

-Can add value-Appease stakeholders

Question 23

List 2 disadvantages to a business of being ethical

Answer 23

-Unsatisfied shareholders-Can be seen as a gimmick