Question 1: Define 'business growth' in your own words.

Answer: Business growth refers to an increase in the size, revenue, or market share of a business over time.

Question 2: Name two common methods a business might use to grow.

Answer: Expanding into new markets and increasing sales to existing customers.

Question 3: Explain one advantage of business growth for a company.

Answer: Business growth can lead to higher profits and increased market power.

Question 4: Describe one potential challenge or risk associated with business growth.

Answer: Rapid growth can strain resources, leading to management difficulties or quality issues.

Question 5: Identify and explain one reason why a business might decide to expand into a new geographical area.

Answer: A business may expand to access new customers and increase sales, especially if the current market is saturated.

Question 6: Sketch a simple diagram showing the relationship between business size and profit. Label the axes and indicate the trend.

Answer: [Model answer: A graph with 'Business Size' on the x-axis and 'Profit' on the y-axis, showing an upward trend line to illustrate that as business size increases, profit tends to increase.]

Question 7: Imagine a small local bakery decides to grow by opening a new branch. List two advantages and one challenge they might face.

Answer: Advantages: Increased sales and brand recognition. Challenge: Managing operations across multiple locations.

Question 8: Draw a flowchart illustrating the different methods a business can use to achieve growth, such as organic growth and external growth strategies.

Answer: A flowchart starting with 'Business Growth' leading to two branches: 'Organic Growth' (e.g., increasing sales, product development) and 'External Growth' (e.g., mergers, acquisitions).

Question 9: Explain how technological advancements can contribute to a business's growth.

Answer: Technological advancements can improve efficiency, reduce costs, and open up new markets or customer bases.

Question 10: Discuss the importance of customer satisfaction in the growth of a business.

Answer: High customer satisfaction can lead to repeat business, positive word-of-mouth, and increased sales, all supporting growth.