Methods of growth Flashcards
Benefits of growth (6 cards)
1
Q
What are some measures of business growth?
A
Sales turnover, number of employees, share capital, market share, number of outlets.
2
Q
What is one benefit of business growth?
A
Bigger businesses benefit from economies of scale.
3
Q
What does economies of scale mean?
A
Lower unit costs of production.
4
Q
How do lower unit costs affect pricing?
A
They enable the business to charge lower prices and increase sales and market share.
5
Q
What is the impact of increased sales and lower costs on profit margin?
A
Larger businesses enjoy a higher profit margin.
6
Q
What advantage do larger businesses have in the market?
A
They have more influence over market price.
