Specification point 3.1.3 · Theme 3

Demergers

Business growth · Business behaviour and the labour market

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A-level Paper 1, June 2019, Q4(b)Short answerCalculate
4 marks
ContextIn 2016, the insurance group Esure undertook a demerger with its GoCompare price comparison website.

Calculate, using the information provided, the total costs of GoCompare in 2016.

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3.3.2 · Costs3.1.3 · Demergers
Costs revision notes Demergers revision notes
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A-level Paper 1, June 2019, Q4(a)Multiple choice
1 mark
ContextIn 2016, the insurance group Esure undertook a demerger with its GoCompare price comparison website.

The most likely reason for this demerger was to:

Abenefit from external economies of scale
Bbenefit from internal economies of scale
Cfocus more on its core business
Dincrease its market share

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3.1.3 · Demergers
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