Why do firms grow? 0.0 / 5 ? EconomicsCompany growthA2/A-levelEdexcel Created by: Niclamb123Created on: 31-03-16 11:12 82367514 Across 1. Increase ... through larger brand recognition and more sales outlets. These could be in the same country or even allow a firm to gain a presence abroad. (5) 4. A firm aims to maximise ..., and may be able to achieve this through expansion, setting price or benefiting from lower costs of production. (6) 5. Gain ... as to prevent potential takeovers by larger predator businesses, also allowing them to survive any major downturn in economic performance. (5) 8. The firm is able to exploit its increased size and to lower long-run average cost. By lowering LRAC and approaching the minimum efficient scale, the firm is moving closer to productive efficiency. (9, 2, 5) Down 2. Some ... will seek to grow their business so that they can satisfy their desire to run a successful company, and see share prices rise (if they have received shares) (10, 8) 3. Firms may wish to develop a new part of their business, and they feel they can buy an existing market leader and with it its ... in the market. (9) 6. Increase ... to hopefully become the dominant firm in a particular industry. May allow them to increase profits, or set prices to their benefit. (6, 5) 7. A firm may have revenue that it doesn't want to class a profit (due to corporation tax) and so will use them to acquire another business. (11)
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