UNIT 1 - Business in the real world - Unit 1.7 - Expanding a business

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Unit 1.7.26 - Business Expansion

Types of expansion

  • Internal (organic) -

Occurs when a business gets bigger by selling more products.

  • External (integration) -

Occurs when a business gets bigger by joining or buying other businesses.

Measuring size

  • Value of sales

  • The bigger the turnover the bigger the business. May lead to increased market share.

  • Value of business

  • What it owns (assets) minus what it owes (liabilities). The higher the value the more it’s worth.

  • Value of shares in the business (market capitalization.

  • Number of employees

  • Business without profits (NHS) more employees means bigger business.

Unit 1.7.27 - Internal Growth

Franchising

Occurs when one business sells the right

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