Business revision

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Name a reason why a business would want to grow:
-benefit from economies of sale, -able to provide more goods/ services, -benefit from larger market share, -gain more recognition, customers, venue and profit
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Define "organic growth" and give an example of how this is achieved:
1. when a business grows on its own, 2. changing the marketing mix by: -taking existing products to new markets ie overseas, -developing new products via development & research, new tech and innovation, -becoming a public limited company
2 of 11
Name the advantage of organic growth:
-a business can maintain its own values without interference
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Name the disadvantage to organic growth:
-slower growth
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Define inorganic growth and give an example of how this is achieved:
1.-when a business combines with another business to grow, 2. -through a merger (when 2 businesses join together), -through a takeover (when one business buys a smaller business)
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Name an advantage of inorganic growth:
-rapid growth, -new shared resources/ skills/ customers
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Name the disadvantage to inorganic growth:
-disagreements & communication problems
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Name an internal financial source for growth:
-retained profits, -sale of assets, -owners own saving
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Name an external source of finance:
-loan capital, -share capital, -stock market flotation
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Explain the difference between organic and inorganic growth:
Organic is when a business grows on its own whereas inorganic is where a business combines with another business to grow
10 of 11
Define "stock market flotation":
-when a business becomes a public limited company by offering shares to the public to buy
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Other cards in this set

Card 2

Front

Define "organic growth" and give an example of how this is achieved:

Back

1. when a business grows on its own, 2. changing the marketing mix by: -taking existing products to new markets ie overseas, -developing new products via development & research, new tech and innovation, -becoming a public limited company

Card 3

Front

Name the advantage of organic growth:

Back

Preview of the front of card 3

Card 4

Front

Name the disadvantage to organic growth:

Back

Preview of the front of card 4

Card 5

Front

Define inorganic growth and give an example of how this is achieved:

Back

Preview of the front of card 5
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