AQA GCSE Business - 3.1.7. Expanding a business
Quiz by Koen De Mulder
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- Q1
Which of the following is a method of external growth?
Opening new stores
Merger
Franchising
Outsourcing
30s - Q2
Which of the following is a disadvantage to a business of growing through franchising?
Some control is lost
The receipt of royalties
Expansion is slow compared to opening new stores
High levels of risk for the franchisor
30s - Q3
When one business acquires a controlling interest in another business it is classed as:
Merger
Outsourcing
Takeover
Franchising
30s - Q4
Which of the following is a disadvantage of organic growth?
It is often hard to control and manage compared to external growth
Less likely to experience diseconomies of scale
Can often be financed through internal funds
Growth may be slow
30s - Q5
Which of the following statements best describes the term economy of scale? The reasons why production costs of an item:
Rises as a firm reduces in size
Rise as a firm expands
Fall as a firm expands
Fall as a firm reduces in size
30s - Q6
Which of the following is an example of inorganic growth?
T-Mobile and Orange merge
ALDI open a new store
British Airways plan to outsource call centres
Marks & Spencer operate online
30s - Q7
Which of the following is the formula for average costs or unit costs?
Total output divided by total costs
Total output divided by total costs multiplied by 100
Total costs divided by total output
Total costs divided by revenue
30s - Q8
Selling goods online is an example of which expansion method?
E-commerce
Opening new stores
Franchising
Outsourcing
30s - Q9
The total costs of producing 10,000 bottles of shampoo is £5,000. The average unit cost is:
£5.00
£2.00
£0.20
£0.50
30s - Q10
When Kraft acquired a controlling interest of Cadbury it was classed as a:
Merger
Opening new stores
Franchise
Takeover
30s - Q11
When a furniture manufacturer uses another business to produce sofas on its behalf it is known as:
Merger
Outsourcing
Takover
Franchising
30s - Q12
Which of the following is an example of an economy of scale?
Reduced staff motivation
Poor communication
Co-ordination issues
Purchasing
30s - Q13
Which of the following is a disadvantage of growth through e-commerce?
Customers may buy online and stop using any physical stores
Customers can be accessed 24 hours a day
An online store adds another purchasing opportunity for customers
The business does not have to open a physical store
30s - Q14
Last year, total output of a business was 150,000 units and the total costs of production were £225,000. This year, total output remained the same but total costs were £300,000. The increase in average unit cost is:
£0.50
£1.70
£0.17
£5.00
30s - Q15
Which of the following is an example of a technical economy of scale?
Chains of communication break down
Buying in bulk reduces the costs of buying raw materials
Large specialised machinery produces vast quantities more efficiently
Average unit costs rise once a the business reaches a certain size
30s