11982517
Description
Flashcards by Tasmin Thiara, updated more than 1 year ago
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Created by Tasmin Thiara
almost 7 years ago
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| Question | Answer |
| Expanding a business | The growth of a business expanding |
| A merger | A merger is when 2 business join together |
| A takeover | A takeover is when one business takes control of another business |
| Internal expansion | This is when the business grows by the increase in production |
| Internal growth | Occurs when a business gets bigger by selling more of its products |
| Franchisee | Buys a franchise, usually in return for a fee and percentage of turnover |
| External growth | Occurs when firms join together |
| Franchisor | Sells a franchise, usually in return for a fee and percentage of turnover |
| Market capitalisation | Measures the value of all a business’s shares |
| E-commerce | The act of buying or selling a product using an electronic system such as the internet |
| Outsourcing | Occurs when a business uses another business to produce for it |
| Business expansion | When a business gets bigger the more customers, more market share and less likely of a takeover. |
| Advantages of buying a franchise | Established brand Access to training and supplies Share marketing costs Learm from other franchises |
| Disadvantages of buying a franchise | Have to share profits Make have to work with other franchisors |
| Advantages of business expansion | More power Bigger company is the more status Other business can not take over as your business is a big brand |
| Disadvantages of business expansion | Decision making made slower as of the amount of people Employees feel isolated |
| Expanding abroad | New target market and greater sales Differnet las and regulations Existiong business may offer competition Purchasing habits may be different |
| Value of sales | The bigger the turnover the bigger the business |
| Market share | This measures the sales of one business a sa percentage of the total market |
| Value of the business | The amont of money the business is worth |
| Diseconomies of scale | Whne the cost per unit increases as a business expands |
| Economies of scale | The more you order - the cheaper each item becomes |
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