Premier Publishing Growth Concepts

Flashcards covering reasons for growth, benefits and disadvantages of becoming a public limited company, and methods of growth for Premier Publishing.

Explain one reason why a business should grow? (2 marks)

Growth can help the business increase its profits by reaching more customers, leading to higher sales and income.

Explain one benefit of becoming a public limited company? (2 marks)

A public limited company can raise large amounts of capital by selling shares to the public through the stock exchange, which can fund expansion.

Explain one disadvantage of becoming a public limited company? (2 marks)

The business risks a loss of control, as shareholders can vote on key decisions and influence the company's operations.

Describe one method of growth that Premier Publishing could use? (2 marks)

Merger: The business could merge with another company to combine resources and increase market share.