Economics

  • Created by: hannahs
  • Created on: 15-11-16 12:04
What is a takeover?
When a business buys another business.
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What is a merger?
Where 2 or more firms agree join together.
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What is an opportuinty cost?
The value of the next best alternative sacrificed.
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What is a diseconomy of scale?
When a businewss becomes so large that its units costs beign to rise. Exaonding frims can experience this.
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What is an econmy of scale?
The cost advantage from business expansioon.
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What is internal growth?
When a business grows from profits, this could be a change in the marketing mix.
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What is external growth?
A merger/takeover.
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What is horizontal intergration?
When the two companies are the same stage of production
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What is price sensitivity?
When changing price results in a chnage in demand.
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What is price insensitivity?
Whenn changing the price means the demand stays the same.
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What is an externality?
Something that affects third parties.
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What is a sign of sucess?
Large commisions.
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What are the signs of business failure?
Customers return products, profits declining.
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What makes a business sucessful?
USP, strong brand image, well-known.
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What is the marketing mix?
Price, product, place, promotion.
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What are 2 ways of measuring business sucess?
Social e.g recyling/charity or Financial e.g. profits
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What is meant by the term 'negative externalities'?
Costs that are paid by people outside a business.
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Why is gas price insensitive?
Gas is a necessity.
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What is a patent?
Right of ownership over an invention or an idea.
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Other cards in this set

Card 2

Front

What is a merger?

Back

Where 2 or more firms agree join together.

Card 3

Front

What is an opportuinty cost?

Back

Preview of the front of card 3

Card 4

Front

What is a diseconomy of scale?

Back

Preview of the front of card 4

Card 5

Front

What is an econmy of scale?

Back

Preview of the front of card 5
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