Busines Paper 2 Flashcards
Name 2 ways a business can be ethical
Honesty
Loyalty
What is a shareholder
Someone who has a share in your business
What is a stake holder
Someone who has an interest in your business
What are the four p
product, price, place, and promotion
What is Legislation
The laws
What is organic growth
The business grown naturally
What is a advantage of organic growth
They have retained profit
What is a disadvantage of organic growth
Growth is slower
What inorganic growth
When a business decides to expand by using merger or takeover
What is inorganic growth
When they decide to grow by using merger or takeover
Advantage of inorganic growth
It’s a lot faster
Market share increases
Disadvantage of inorganic growth
High risk (it could fail)
80 percent of merges fail
What are the three parts of the design mix
aesthetics, functions, and manufacturing costs
What is import
good or service bought in one country that was produced in another
What is a export
to a product or service produced in one country but sold to a buyer abroad
Advantage of import
Cost are reduced
Product vary
Disadvantage of import
Legal risk
Culture risk
Advantage of export
Increased profits
Government support