Why Some Businesses Grow And Others Remain Small:
Overview
Some businesses start in a garage and end up employing thousands; others stay as a single shop for decades and their owners would not have it any other way. Why do firms grow, and why do some choose to stay small? The answer reveals how ambition, finance and risk pull a business in different directions.
In this lesson you will learn why owners want to expand, the internal and external routes they can take to grow, the problems growth creates and how to manage them, and the very good reasons many businesses stay small on purpose. You will leave able to recommend a sensible growth strategy for a given firm and justify it.
Objectives
- Why the owners of a business may want to expand the business
- Different ways in which businesses can grow, e.g. internal/external
- Problems linked to business growth and how these might be overcome
- Why some businesses remain small
Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on Why Some Businesses Grow And Others Remain Small:. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- When two businesses agree to join together to form one larger business, this is a: A. takeover B. merger C. franchise D. flotation Answer: B
- A car manufacturer buys a tyre maker that supplied it. This is: A. horizontal integration B. forward vertical integration C. backward vertical integration D. conglomerate integration Answer: C
- Which is an example of internal (organic) growth? A. taking over a rival B. merging with a competitor C. opening more of the firm's own shops D. buying a supplier Answer: C
- A firm's sales rise from 4 million dollars to 5 million dollars. The percentage growth is: A. 10% B. 20% C. 25% D. 50% Answer: C
- Which is a reason a business might choose to remain small? A. to gain economies of scale B. to keep close personal control C. to increase market share D. to spread risk across markets Answer: B
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Available on the Green Bridge App
Download the Green Bridge CBT app on your phone or computer to access full lesson notes, practice questions, and more.
Recommended Books
Practice Mock Questions
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