Edexcel A-Level Economics A2 3.3.1 3b Significance of the Divorce of Ownership From Control for Business Objectives the Topic Practice

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Pearson Edexcel IAL Economics

Unit 3: Business Behaviour

3.3.1 - Types and sizes of businesses

3.3.1.1a - Types of businesses: • private sector organisations • state-owned enterprises (public

3.3.1.2a - size of businesses: • SMEs (small- and medium-size enterprises) • large corporations

3.3.1.2b - businesses grow: • organic growth • merger/takeover: • forward vertical integration •

3.3.1.2c - Advantages and disadvantages of each type of merger/takeover

3.3.1.2d - Constraints on business growth: • size of market • access to finance • owner objectives

3.3.1.2e - Reasons some firms tend to remain small and others grow

3.3.1.2f - Impact of growth of firms on businesses, workers and consumers

3.3.1.2g - Demergers: • reasons for demergers • impact of demergers on businesses, workers and

3.3.1.3a - Different business objectives: objectives • profit maximisation • revenue maximisation

3.3.1.3b - significance of the divorce of ownership from control for business objectives: the

3.3.1.3c - Formulae for different business objectives: • profit maximisation • revenue

3.3.2 - Revenue, costs and profits

3.3.3 - Market structures and contestability

3.3.4 - Labour markets

3.3.5 - Government intervention

Unit 4: Developments in the Global Economy

4.3.1 - Causes and effects of globalisation

4.3.2 - Trade and the global economy

4.3.3 - Balance of payments, exchange rates and international competitiveness

4.3.4 - Poverty and inequality

4.3.5 - The role of the state in the macroeconomy

4.3.6 - Growth and development in developing, emerging and developed economies

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