Why does a business benefit from growth?
It will have more competition
It will have more market power
It will have more overheads
What do economies of scale result in?
Lower unit costs
Unchanged unit costs
Higher unit costs
What is spreading overheads over a large level of output an example of?
Economies of scale
Divestment
Vertical integration
How can a business grow in size?
Giving staff bonuses
Delayering
Offering franchises
When does organic growth occur?
When a company hires more staff
When a company merges with a rival
When a company takes over a rival