Edexcel GCSE Business Paper 2 Exam Latest
Update 2025 With Questions and Answers(verified
solutions)|Graded A+|100% Guarantee Pass!!!
Why is differentiation important? - CORRECT ANSWER-Help businesses to:
Gain advantages over rivals when faced w/ competition as it makes the product distinctive
What promotional methods are there? - CORRECT ANSWER-Advertising
sponsorship
,Product trials
Special offers
Public relations
What are the pros and cons of using advertising as a promotional method? - CORRECT ANSWER-+ big
impact and grab customers' attention if advert is in right place
- expensive
What's internal growth? - CORRECT ANSWER-When a business expands by itself
What are methods of internal growth? - CORRECT ANSWER-New markets
New products
New technology
What is external/inorganic growth? - CORRECT ANSWER-Business growth by joining forces with
another
What are the 2 types of inorganic growth? - CORRECT ANSWER-Merger
Takeover
What is a merger and a takeover? - CORRECT ANSWER-Merger = 2+ businesses voluntarily agree to
join up and work as one
, Takeover = when 1 business buys another (buying 50%+ shares)
What is a PLC? - CORRECT ANSWER-a business that can sell shares on the stock exchange
What are the pros and cons of being a PLC? - CORRECT ANSWER-+ limited liability
+ a lot of capital can be raised
- Risk of takeover
- accounts have to be made public so less privacy around financial performance
What are examples of internal finance sources? - CORRECT ANSWER-Sale of assets
Retained profit
What are examples of external finance sources? - CORRECT ANSWER-Loan capital
Share capital
What are dividends? - CORRECT ANSWER-a sum of money paid regularly by a company to its
shareholders out of its profits
What is globalisation? - CORRECT ANSWER-When a business operates internationally + they become
more connected
How does globalisation affect businesses? - CORRECT ANSWER-imports (lower prices of products and
raw materials than they would be able to produce in the UK)
Update 2025 With Questions and Answers(verified
solutions)|Graded A+|100% Guarantee Pass!!!
Why is differentiation important? - CORRECT ANSWER-Help businesses to:
Gain advantages over rivals when faced w/ competition as it makes the product distinctive
What promotional methods are there? - CORRECT ANSWER-Advertising
sponsorship
,Product trials
Special offers
Public relations
What are the pros and cons of using advertising as a promotional method? - CORRECT ANSWER-+ big
impact and grab customers' attention if advert is in right place
- expensive
What's internal growth? - CORRECT ANSWER-When a business expands by itself
What are methods of internal growth? - CORRECT ANSWER-New markets
New products
New technology
What is external/inorganic growth? - CORRECT ANSWER-Business growth by joining forces with
another
What are the 2 types of inorganic growth? - CORRECT ANSWER-Merger
Takeover
What is a merger and a takeover? - CORRECT ANSWER-Merger = 2+ businesses voluntarily agree to
join up and work as one
, Takeover = when 1 business buys another (buying 50%+ shares)
What is a PLC? - CORRECT ANSWER-a business that can sell shares on the stock exchange
What are the pros and cons of being a PLC? - CORRECT ANSWER-+ limited liability
+ a lot of capital can be raised
- Risk of takeover
- accounts have to be made public so less privacy around financial performance
What are examples of internal finance sources? - CORRECT ANSWER-Sale of assets
Retained profit
What are examples of external finance sources? - CORRECT ANSWER-Loan capital
Share capital
What are dividends? - CORRECT ANSWER-a sum of money paid regularly by a company to its
shareholders out of its profits
What is globalisation? - CORRECT ANSWER-When a business operates internationally + they become
more connected
How does globalisation affect businesses? - CORRECT ANSWER-imports (lower prices of products and
raw materials than they would be able to produce in the UK)
