Section 1.3 | Baamboozle - Baamboozle | The Most Fun Classroom Games!

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What term is used to state a business's inability to pay its debt because it has become illiquid?

Insolvency

There are a few reasons why some businesses remain small. Explain one reason.

Name two changes in the business environment that can result in the failure of a business.

As governments have limited finance, their support may be dependent on a few factors. Name two.

Most new businesses fail due to two specific reasons. Name them.

Name 3 characteristics of successful entrepreneurs.

Confident, Ambitious, Innovative, Hard-working, Good communicator, Self-motivated, Analytical abilities.........

Why do governments support start-ups? Give 2 answers

Can reduce unemployment, encourage social enterprise, increase competition and boost economic growth.

How does horizontal integration benefit a business? Name 2 ways.

Increases market share, reduces number of competing firms and can gain cost advantages from reducing number of workers or from bulk-buying of supplies.

State one possible strategy to overcome supply shortages that can hold up production.

Why would owners want to expand their firms? Give two reasons.

A business strategy that involves expanding into new markets or products to reduce the risk of a fall in consumer demand for any one product or in any one region or country. What is it?

Diversification

How are business plans beneficial for entrepreneurs? Name 2 ways.

Government support for start-ups can be available in the form of a grant. How does this benefit a start-up?

Grants can be used to offset some financial burdens during the opening stage of a business, therefore reducing risks of failure in the early years.

This form of external growth can happen with or without the agreement of the owners of the other company. What is it?

Takeover or acquisition

There are four common methods of measuring business size. Name one method and state its limitations.