Growing the Business | Edexcel GCSE Business (1BS0)
Growing the Business
- 79 questions
- 5 subtopics
- Paper 2
- Paper 2
Growing the Business is examined in Paper 2, Building a business (Theme 2).
It covers organic and inorganic business growth, public limited companies and finance for growth, changes in business aims and objectives, business and globalisation and ethics, the environment and business.
Sample questions from Growing the Business
Answer each one closed book first, then open the answer.
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Organic and inorganic business growth
How can technology help a business reach new markets?
Show the answer
A website with online payment lets a business sell to customers far beyond its local area. Social media can promote the business to new groups cheaply. -
Organic and inorganic business growth
What is a takeover?
Show the answer
A takeover is when one business buys enough shares in another to gain control of it. A takeover is hostile if the target's directors oppose it. -
Public limited companies and finance for growth
What is stock market flotation?
Show the answer
Flotation is when a company first offers its shares for sale to the public on a stock exchange. A private limited company must re-register as a plc before it can float. -
Public limited companies and finance for growth
What is sale and leaseback?
Show the answer
Sale and leaseback is selling a property and then renting it back from the buyer. The business raises a large sum but keeps using the building. -
Changes in business aims and objectives
How can legislation lead a business to change its objectives?
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A new law can raise costs or ban a product, forcing a change of direction. The UK soft drinks levy of April 2018 led many makers to cut the sugar in their drinks. -
Changes in business aims and objectives
How does a change of objective affect the size of a workforce?
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A growth objective usually means recruiting more staff to meet higher demand. A survival objective may mean redundancies to cut costs. -
Business and globalisation
Why might a business change its location as a result of globalisation?
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A business may move production to a country with lower wages or rents. A base closer to overseas customers also cuts transport costs. -
Business and globalisation
How does a tariff affect a UK business that imports its raw materials?
Show the answer
The tariff raises the cost of the business's materials and squeezes its profit margin. The business may have to raise prices or find a domestic supplier.
The 5 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Organic and inorganic business growth | Organic growth through innovation, research and development, new markets and technology, inorganic growth by merger or takeover, and the advantages and problems of each. | 16 |
| Public limited companies and finance for growth | Public limited companies and stock market flotation, their costs and pressures, and financing growth through retained profit, selling assets, sale and leaseback, loan capital and share capital. | 16 |
| Changes in business aims and objectives | Why objectives change with market conditions, technology, law and performance, entering and exiting markets, and changing the size of the workforce or the product range. | 15 |
| Business and globalisation | Globalisation, imports and exports, moving production overseas, multinationals, tariffs and trade blocs, the effect of leaving the EU, and adapting the marketing mix abroad. | 16 |
| Ethics, the environment and business | Ethical behaviour and Fairtrade, the trade-offs between ethics, the environment and profit, sustainability, UK law on plastic waste, and how pressure groups influence businesses. | 16 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
Edexcel GCSE Business Active Recall Guide
Every topic, not just this one. 672 questions with their answers.