Whole of AQA GCSE business paper 2 Already
Passed
1). Methods of expansion
Ans: Internal (organic) growth
External growth
Franchising
2). Methods of internal growth
Ans: - Opening new stores: extra costs however more potential sales
- E-commerce: business has access to a larger market however there can be technical
problems
- Franchising: firm doesn't have the usual risks and costs of running a new outlet as it's
under a predominant brand however the franchisee has little to no freedom
3). Benefits with internal growth
Ans: - Relatively inexpensive
- Firm grows slowly so quality doesn't suffer and new staff are trained well
4). Issues with internal growth
Ans: - It can take a while and some owners don't want to wait a long time to start
making money
5). Methods of external growth
Ans: - Merger: two firms join together to form a larger firm
- Takeover: an existing firm expands by buying more than half the shares in another firm
6). The 3 methods of merger/takeover
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, Ans: Supplier - A firm joins with a supplier: allows the firm to control supply, cost and
quality of the supply
Competitor - A firm joins with one of its competitors: more economies of scale and bigger
market share, also more able to compete
Unrelated firm - Two unrelated firms join together: diversifies the firm into new markets
thus reducing risk of relying on few products
7). Benefits of external growth
Ans: increase profit, increase market share, gain new ideas, avoid having to compete,
gain from economies of scale
8). Issues with external growth
Ans: - Not all firms operate the same way and it may cause problems that impacts
costs and productivity
9). Being sustainable
Ans: Working in a way that doesn't damage the Earth for future generations
10). Methods of sustainability
Ans: - Renewable resources
- Vehicles and machinery that produce less Co2
- Electrical goods that are more energy efficient
11). Advantages of being sustainable
Ans: - Gives a competitive advantage - a "green image" can attract new customers and
increase sales
12). Disadvantages of being sustainable
Ans: - Initially quite expensive in the short term - can decrease profits or even cause
losses
13). Consumer spending
PaperStoc.com Page 2 of 12
Passed
1). Methods of expansion
Ans: Internal (organic) growth
External growth
Franchising
2). Methods of internal growth
Ans: - Opening new stores: extra costs however more potential sales
- E-commerce: business has access to a larger market however there can be technical
problems
- Franchising: firm doesn't have the usual risks and costs of running a new outlet as it's
under a predominant brand however the franchisee has little to no freedom
3). Benefits with internal growth
Ans: - Relatively inexpensive
- Firm grows slowly so quality doesn't suffer and new staff are trained well
4). Issues with internal growth
Ans: - It can take a while and some owners don't want to wait a long time to start
making money
5). Methods of external growth
Ans: - Merger: two firms join together to form a larger firm
- Takeover: an existing firm expands by buying more than half the shares in another firm
6). The 3 methods of merger/takeover
PaperStoc.com Page 1 of 12
, Ans: Supplier - A firm joins with a supplier: allows the firm to control supply, cost and
quality of the supply
Competitor - A firm joins with one of its competitors: more economies of scale and bigger
market share, also more able to compete
Unrelated firm - Two unrelated firms join together: diversifies the firm into new markets
thus reducing risk of relying on few products
7). Benefits of external growth
Ans: increase profit, increase market share, gain new ideas, avoid having to compete,
gain from economies of scale
8). Issues with external growth
Ans: - Not all firms operate the same way and it may cause problems that impacts
costs and productivity
9). Being sustainable
Ans: Working in a way that doesn't damage the Earth for future generations
10). Methods of sustainability
Ans: - Renewable resources
- Vehicles and machinery that produce less Co2
- Electrical goods that are more energy efficient
11). Advantages of being sustainable
Ans: - Gives a competitive advantage - a "green image" can attract new customers and
increase sales
12). Disadvantages of being sustainable
Ans: - Initially quite expensive in the short term - can decrease profits or even cause
losses
13). Consumer spending
PaperStoc.com Page 2 of 12
