1.5

Question 1

What is growth for a business?

Answer 1

expanding the business

Question 2

What are the reasons for businesses to grow?

Answer 2

desire to run a large business, desire for profit and market share, , improve profitability, easier access to finance

Question 3

What are ways growth can be measured?

Answer 3

sales revenue, profit, market share, impact, resilient business ecosystem

Question 4

What are advantages of growth?

Answer 4

achieving econmies of scale, increase in marketshare sales revenue and profit, influence the prices of products, reduce of risk and increase stability, attract talented employees

Question 5

What are disadvantages of growth?

Answer 5

expensive so might need to take a loan, problems with quality of products, loss of control of the business, labour turnover

Question 6

What are advantages of growth nationally/globally?

Answer 6

1. more tax revenue for the government means the money can help with the community
2. reduce the rate of unemployment and increase incomes as this creates incentives for workers

Question 7

What are disadvantages of growth nationally/globally?

Answer 7

1. environmental issues like increased pollution as a business grows
2. lost control of their operations with complex supply chains and organisation

Question 8

What are reasons businesses stay small?

Answer 8

maintaining control, small market size, environment sustainability, more personalised services with customers

Question 9

What are advantages of staying small?

Answer 9

1. highly customised goods for customers
2. personal relationships with customers
3. more unique products sold in small quanitites at high prices (profitable)
4. respond quickly to changing market conditions

Question 10

What are disadvantages of staying small?

Answer 10

1. easily harmed by changes in the wider economy
2. less financial resources (ex: loans)
3. harder to recruit staff due to wage competition
4. struggle to achieve economy of scale