A level business Exam
With answers
Economies of scale - answer-reduction in average costs as output increases e.g bulk-
buying, marketing, financial, technology
Diseconomies of scale - answer-rising long-run average costs as a business expands
e.g communication, organisation, motivation, morale
Internal economies of scale - answer-cost reductions by single business as it grows
External economies of scale - answer-cost reductions available to all businesses as
industry grows
Overtrading - answer-growing too fast run out of cash
Merger - answer-when firms join together for synergy 1+1=3
Takeover- hostile/friendly - answer-
Horizontal/vertical/forward/backward integration - answer-
Synergy - answer-1+1=3
Organic growth - answer-internal through more outlets, more products
Inorganic growth - answer-external growth eg merger, takeover
Competition Markets Authority -CMA - answer-oversee any merger activity
Centring - answer-used in calc of moving average
Correlation - answer-relationship between two sets of variables
Correlation coefficient - answer-measure of the extent of the relationship between 2 sets
of variables
Moving average - answer-a succession of averages from successive segments
Scatter graph - answer-shows whether correlation exists between variables
With answers
Economies of scale - answer-reduction in average costs as output increases e.g bulk-
buying, marketing, financial, technology
Diseconomies of scale - answer-rising long-run average costs as a business expands
e.g communication, organisation, motivation, morale
Internal economies of scale - answer-cost reductions by single business as it grows
External economies of scale - answer-cost reductions available to all businesses as
industry grows
Overtrading - answer-growing too fast run out of cash
Merger - answer-when firms join together for synergy 1+1=3
Takeover- hostile/friendly - answer-
Horizontal/vertical/forward/backward integration - answer-
Synergy - answer-1+1=3
Organic growth - answer-internal through more outlets, more products
Inorganic growth - answer-external growth eg merger, takeover
Competition Markets Authority -CMA - answer-oversee any merger activity
Centring - answer-used in calc of moving average
Correlation - answer-relationship between two sets of variables
Correlation coefficient - answer-measure of the extent of the relationship between 2 sets
of variables
Moving average - answer-a succession of averages from successive segments
Scatter graph - answer-shows whether correlation exists between variables
