Question 1

State two benefits of franchising for the franchisor.

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Question 2

A franchisee pays an initial fee and monthly royalties. Identify what the franchisee receives in return.

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Question 3

Distinguish between internal and external economies of scale.

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Question 4

Define the term franchise agreement.

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Question 5

State two benefits of franchising for the franchisee.

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Question 6

Explain one disadvantage of internal growth.

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Question 7

Define the term economies of scale.

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Question 8

Define the term diseconomies of scale.

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Question 9

Define the term franchise.

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Question 10

Outline one difference between a merger and a joint venture.

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Question 11

State two advantages of internal growth for a business.

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Question 12

Define the term merger.

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Question 13

State two reasons why businesses merge or acquire other businesses.

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Question 14

A large retailer buys a small online brand to access its technology and customer data. Identify one reason for this acquisition.

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Question 15

Define the term internal growth.

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Question 16

Define the term acquisition.

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Question 17

State two types of internal economies of scale.

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Question 18

Outline one way competition regulators could affect a proposed acquisition.

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Question 19

Define the term external growth.

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Question 20

Define the term acquisition.

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Topic 1.5: Growth and Evolution Questions

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