1.7 Expanding a business Flashcards
(7 cards)
1
Q
Economies of scale
A
When a business’s suppliers provide a discount so the products average unit cost decreases
2
Q
Diseconomies of scale
A
When a business grows large that the products average unit cost increases
3
Q
Internal expansion
A
When a business grows by expanding its operations
4
Q
How can internal expansion be measured?
A
- Sales
- Profits
- Output
- Amount of employees
- Number of stores
5
Q
Organic growth
A
Designing & developing new product shares
6
Q
Franchisor
A
Owner
7
Q
Franchisee
A
Person buying into the business
