AQA GCSE · Question 01.8 · Business in the real world
Explain one method a business may use to expand.
How to approach this question
1. State a method of business expansion (e.g., franchising, opening new stores, merging with another business).\n2. Explain how this method works to make the business larger.
Full Answer
Businesses can expand in several ways. This is known as growth. \n- **Organic (Internal) Growth:** Expanding from within, for example by opening new branches, developing new products, or entering new markets (e.g., selling online).\n- **Inorganic (External) Growth:** Expanding by joining with other businesses, for example through a merger (two businesses joining to become one) or a takeover/acquisition (one business buying another). \n- **Franchising:** A specific model where a business licenses its brand, products, and operating model to independent owners.
Common mistakes
✗ Simply stating a method without explaining *how* it leads to expansion. For example, just writing "merger" is not enough for 2 marks.\n✗ Giving a vague answer like "sell more products". This is the result of expansion, not the method.
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