business growth
a business with operations in more than one country
multinational
define market share
proportion of sales in a market taken by one business
one disadvantage of using bank loans
interest must be paid
loan must be paid back
define tariff
a tax on imports or exports
define stakeholder
anyone with an interest in the activities of a business
two methods of external growth
mergers
takeovers
give example of an internal reason for a business to change its aims and objectives
new chief executive
culture of an organisation
attitude of workers
define dividends
% of business profits paid to shareholders
define trading bloc
a group of countries that agree to act together to promote trade
define trade-off
a balance between two different or opposing objectives
advantages of a PLC
ability to raise finance
limited liability
more prestigious
can negotiate better prices with suppliers
define retrenchment
when a business reduces the scale of its operations; laying off workers or closing branches
two internal sources of finance
retained profit
selling assets
what is a protectionist measure?
an action by government to reduce the flow of imports into the country
define lobbying
trying to influence a government
two methods of internal growth?
introducing new products
entering new markets
what is a product portfolio?
the range of good and services offered by any one business
define stock market flotation
becoming a PLC through issuing shares for sale on a stock exchange
define globalisation
when businesses operate on an international scale
define boycott
refusing to buy or from interact with a particular business
disadvantage of a multinational
loss of focus on key markets
cultural / language differences
exchange rates
potential damage to reputation if unethical
two external reasons why a business's aims and objectives might change
market conditions
change in regulations
what is a secured loan?
guaranteed; if the company fails to pay back loan, the bank can take the asset and sell it.
what is a domestically produced good?
produced at home or within a business' home country
give 3 methods used by a pressure group
lobbying, social media campaigns, viral marketing, public protests, lobbying