Back to the full dot-point answer
Northern IrelandBusiness StudiesQuick questions
Growing the Business
Quick questions on Business growth and economies of scale - CCEA A-Level Business Studies AS 2
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is internal (organic) growth?Show answer
Internal growth comes from within the firm: selling more of its existing products, launching new products, opening new outlets or expanding into new markets. It is usually slower and lower-risk, funded from profits or borrowing, and lets the firm keep its culture and control.
What is external growth (integration)?Show answer
External growth comes from joining with other firms through a merger (two firms agreeing to combine) or a takeover (acquisition) (one firm buying control of another). It is faster and can bring instant market share and new capabilities, but is riskier, costly and can cause culture clashes.
What is q1?Show answer
State two methods of internal (organic) growth. [2 marks]
What is q2?Show answer
Explain one economy of scale a growing manufacturer might gain. [3 marks]
What is q3?Show answer
Analyse why a firm might suffer diseconomies of scale as it grows. [6 marks]
Have a question we have not covered?
This dot-point answer is short enough that we have not extracted many short questions yet. Read the full dot-point answer or ask Mo, our study assistant, in the chat for follow ups.