Profit & Revenue Maximisation Profit Maximisation Most firms have the rational business objective of profit maximisation Profits benefit shareholders as they receive dividends & also increa...
Reasons for Demergers A demerger occurs when a firm sells off at least one of the businesses it owns, or splits itself into separate parts to create two or more firms Reasons For Demergers Reducing...
How Businesses Grow Business growth can be organic or external Organic growth (internal) is usually generated by gaining greater market share product diversification opening a new store internation...
Reasons for Growth & Reasons to Remain Small Many firms start small & will grow into large companies or even multi-national corporations (Amazon started in a garage) Reasons Why Firms Grow ...
Trade-offs Between Macroeconomic Objectives Policy decisions by governments often create a trade-off in the macroeconomic objectives Achieving one objective may come at the cost of worsening progre...
Supply-side Policies Supply-side policies aim to shift the long-run aggregate supply (LRAS) There are two categories of supply-side policies Interventionist and market-based Interventionist supply-...
Demand-side Policies Demand-side policies aim to shift aggregate demand (AD) in an economy There are two categories of demand-side policies Fiscal policy and monetary policy Fiscal policy involves ...
Economic Growth Economic growth is a central macroeconomic aim of most governments Many developed nations (UK included) have an annual target rate of 2-3% This is considered to be sustainable growt...
Benefits & Costs of Economic Growth Economic growth is considered to be the main contributor to an improvement in the standards of living Due to the negative aspects of economic growth, there i...
