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TOPIC QUESTION - PAPER 1
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mishi
January 27, 2025 at 7:14:05 AM
Feb/Mar 2021
Version 2
1.0 Understanding Business Activity
1.3 Enterprise, Business Growth and Size
YOUR ANSWER
taking over a competitor allows business to expand . it reduces the competition and business can use the already available resources of rival and have skilled employees available so there would be no need to have any other additional costs. however it may result in diseconomies of scale as it would be difficult to manage if the size of rival firms is oo large also there are other ways by internal growth such as opening chain of business etc . business may takeover rival firm but is the rival is not operating well it mayy create short term hurdles for the business when expandig
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