6 (a) State one drawback to Mind Candy of organic growth - Edexcel - GCSE Business - Question 6 - 2019 - Paper 1

Mind Candy could use social media marketing as a method to promote its new app. This could involve creating engaging posts, utilizing influencers, and running targeted ads to reach potential users.

In choosing between retained profit and share capital, Mind Candy should consider the long-term implications of each option.

Retained profit offers the advantage of not diluting existing ownership, allowing the current stakeholders to maintain their control over the business. Additionally, it reduces the need to pay back any debts or dividends, resulting in greater financial flexibility. However, this may limit the amount of funds available for immediate growth initiatives.

On the other hand, share capital could provide Mind Candy with the necessary funds quickly, enabling them to invest in new projects, marketing strategies, and perhaps hiring new talent. However, this comes at the cost of diluting the ownership share of existing stakeholders and potentially creating pressure from new investors for faster returns.

Ultimately, if Mind Candy prioritizes rapid growth and expansion, opting for share capital could be more beneficial despite the dilution of ownership.