1. Business Questions and Answers
Definitely the last bit - honest!!!

2. What is a large firm? Can be assessed in many ways Sales Employees
Assets
Profits
Shares
It is not always good to be the largest business in the market..

3. Why do some firms remain small?
Easier management
Nice feeling of belonging
Flexibility
No union problems
Community feeling

4. How can a firm grow in size - is it easy?
There are 2 main ways of growth for a business
INTERNAL GROWTH
Increasing sales, employing more staff to cope, increasing the market share
EXTERNAL GROWTH
Merger/amalgamation and takeover

5. What is integration?
Integration is a term used to describe a merger with another business - there are different types of integration:-

6. METHODS OF INTEGRATION
Timber
Producer
Backward
Vertical
Integration
Paper
Manufacturer
Paper
Manufacturer
Forward
Vertical
Integration
Horizontal
Integration
Book
Publisher

7. How can firms survive competition?
Keep up-to-date - technology
Consider diversification into other areas
Ensure you keep ahead of your competition
Give the customer what they want
Use economies of scale

8. What are the advantages of internal and external growth
Management advantages - specialisation
Financial benefits - security and loans
Umbrella advertising for brand
Economies of scale
Better locations

9. Why do businesses fail? INTERNAL unhappy customers cash flow problems
poor resource mgmt
poor marketing
staff problems
EXTERNAL (pest)
Political issues - legislation changes
Economy - recession
Social - changes in tastes
Technological - not keeping up
Competition