Economics 5.0 / 5 based on 1 rating ? Business Studies & EconomicsEconomicsGCSEEdexcel Created by: hannahsCreated on: 15-11-16 12:04 What is a takeover? When a business buys another business. 1 of 19 What is a merger? Where 2 or more firms agree join together. 2 of 19 What is an opportuinty cost? The value of the next best alternative sacrificed. 3 of 19 What is a diseconomy of scale? When a businewss becomes so large that its units costs beign to rise. Exaonding frims can experience this. 4 of 19 What is an econmy of scale? The cost advantage from business expansioon. 5 of 19 What is internal growth? When a business grows from profits, this could be a change in the marketing mix. 6 of 19 What is external growth? A merger/takeover. 7 of 19 What is horizontal intergration? When the two companies are the same stage of production 8 of 19 What is price sensitivity? When changing price results in a chnage in demand. 9 of 19 What is price insensitivity? Whenn changing the price means the demand stays the same. 10 of 19 What is an externality? Something that affects third parties. 11 of 19 What is a sign of sucess? Large commisions. 12 of 19 What are the signs of business failure? Customers return products, profits declining. 13 of 19 What makes a business sucessful? USP, strong brand image, well-known. 14 of 19 What is the marketing mix? Price, product, place, promotion. 15 of 19 What are 2 ways of measuring business sucess? Social e.g recyling/charity or Financial e.g. profits 16 of 19 What is meant by the term 'negative externalities'? Costs that are paid by people outside a business. 17 of 19 Why is gas price insensitive? Gas is a necessity. 18 of 19 What is a patent? Right of ownership over an invention or an idea. 19 of 19
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