Business 2

• What is the focus of theme two in the business study material?

  Business growth and related concepts
• What is organic growth in a business context?

  Growth by expanding its own activities
• How can a clothing brand demonstrate organic growth?

  By opening more stores over time
• What are some ways business growth can occur?

  Increased sales, new markets, and product development
• What is the formula for calculating revenue?

  Revenue = sales amount × price
• What is the fixed interest rate mentioned for a loan?

  Four percent
• What is collateral in the context of a loan?

  An asset to secure the loan
• What role do banks play in business financing?

  Providing capital for businesses
• What do shares represent in a company?

  Ownership of a company
• What happens to a business's control after selling shares?

  The business loses some control
• What is a dividend in relation to shares?

  A share of the profits paid to shareholders
• What is a limitation for sole traders regarding shares?

  They cannot sell shares to raise money
• What are the impacts of financing growth using loan capital?

  • Positive: Access to funds for expansion
  • Negative: Increased debt obligations
• What is the difference between aims and objectives in a business context?

  Aims are long-term visions; objectives are steps
• What might a new business aim for initially?

  Survival in the market
• How can a business grow its market share?

  By entering new markets or increasing sales
• What can cause a business to change its aims and objectives?

  Changes in market conditions and competition
• What is one reason a business might exit a market?

  Shrinking market for its products
• What is a common growth strategy for businesses?

  Entering new markets
• What might a business do if it is not performing well?

  Reduce its workforce to cut costs
• How can technology impact workforce size in businesses?

  It can reduce the need for staff
• What is one reason businesses may expand their product range?

  To manage risk and increase revenue
• What is GDP?

  Total market value of finished goods
• What does globalization refer to?

  Increased global trade and connectivity
• How does globalization affect UK businesses?

  Increased competition from overseas
• What is the impact of imports on UK businesses?

  They can reduce demand for domestic products
• What is an example of a benefit from imports?

  Access to a wider range of goods
• What is a multinational company (MNC)?

  A company operating in multiple countries
• What is one advantage of being a multinational company?

  Wider market access and brand recognition
• What is a tariff?

  A tax on imported goods
• How does a tariff affect demand for imports?

  It reduces demand by increasing prices
• What type of options does McDonald's offer in India?

  Chicken and vegetarian options
• Why is it culturally inappropriate for McDonald's to focus on beef products in India?

  It would offend many people in India
• How do exchange rates affect a company's profits and revenues?

  They fluctuate and impact financial outcomes
• How does a tariff affect the price of imports?

  It increases the price of imports
• What is the purpose of a quota in international trade?

  To limit the number of imports allowed
• Why might a country impose a quota on car imports?

  To stimulate its domestic car industry
• What is a trade block?

  A group of countries reducing trade barriers
• What is an example of a trade block?

  The European Union (EU)
• What happened to trade between the UK and EU after Brexit?

  Tariffs and taxes increased on goods