Objectives of Growth (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
ShowHide
Practise the questions
10 questions from this quiz
What does business growth involve?
What does business growth involve?
Expanding operations & gaining market share
What was Missguided's annual growth rate when sales grew from 51M?
What was Missguided's annual growth rate when sales grew from 51M?
191%
What are economies of scale?
What are economies of scale?
Falling average costs as output increases
Why can large firms negotiate better prices for raw materials?
Why can large firms negotiate better prices for raw materials?
They buy in bulk & admin costs don't rise proportionally
What is the principle of increased dimensions?
What is the principle of increased dimensions?
Capital costs don't rise proportionally to capacity
What is a managerial economy of scale?
What is a managerial economy of scale?
Employing specialist managers not generalists
What are external economies of scale?
What are external economies of scale?
Cost reductions benefiting all firms in an industry
How can large businesses exercise power over suppliers?
How can large businesses exercise power over suppliers?
Pressure suppliers to reduce prices
What causes diseconomies of scale?
What causes diseconomies of scale?
Communication issues & control problems
What is overtrading?
What is overtrading?
Expanding too quickly without enough finance