Ch 22 Business Expansion (Part 2)
Debt Capital + Equity Capital
Control
Interest Repayments/Dividends
Risk
Collateral
Tax
Implications of Business Expansion for the Business
Short + Long-term Implications
Organisation Structure
Product Mix
Profitability
Employment
Implications of Business Expansion for Stakeholders
Consumers
Government
Local Community
Employees
Investors
Importance of Business Expansion
Domestic Economy
Increased Employment
Increased Tax Revenue
Further Expansion
Lower prices
Foreign Markets
Increased Employment
Increased Exports
Foreign Currency
Spreading Risk
Improved International Relations
Restrictions to Business Expansion
Irish Law
EU Law
Advantages of Businesses Remaining Small
Easier to manage
Customer loyalty
Change
Faster Decision-making
Disadvantages of Businesses Remaining Small
Costs
Lack of Capital
Staffing
Profits