Chapter 17 Expanding the business

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Presentation transcript:

Chapter 17 Expanding the business

Past exam questions 2011

2010

2009 Q2 A and Q5 A+B

2006 Q6

2005 B + C

2003 Q2 A 2002 ABQ

What is ‘Expansion’? Expansion means ‘getting bigger’. It involves selling more products, entering new markets and obtaining more assets (eg.: new buildings, etc) One of the main aims of any business is to expand and increase profits. Expansion can be achieved from within the business itself or through other businesses outside of itself. Internal growth is referred to as organic growth, while growth involving another business is called inorganic growth. eg.: Dunnes Stores has 150 Stores today compared with one when it started in 1944.

Reasons for Business Expansion

Defensive cont.

How Businesses Expand

Choosing Finance for Expansion Cost Security Tax implications control