A/A* (AO3/4) - Debt
Business: AQA A Level (2023 Specification), topic 5.3.5
Diversification
Diversification involves targeting new products at new markets to increase sales. Diversification can spread risk as it gives businesses an alternative if the demand for one product declines. An example of diversification is Uber ride-sharing & Uber Eats.
Uber
UberEATS
Test yourself on A/A* (AO3/4) - Debt
If a business is viewed as less risky than it was, and it is getting new debt, what happens to the interest rate that a business pays on its debt?
What are businesses that are able to raise more debt, more likely to be able to do?
If a business grows by launching its own products into new markets, what is this an example of?