6 (a) State one drawback to Mind Candy of organic growth - Edexcel - GCSE Business - Question 6 - 2019 - Paper 1

Mind Candy could utilize social media marketing as a method to promote its new app, leveraging platforms like Instagram and Twitter to reach a wider audience and engage potential users through interactive content.

Mind Candy should consider choosing retained profit as the source of financing the £1.2 million investment. Retained profit is less risky than issuing share capital, as it does not dilute ownership. This option allows Mind Candy to maintain control of the company while avoiding the financial obligations associated with debt financing or the complexities of attracting new investors. Furthermore, using retained profit reflects positively on the company’s financial stability, potentially making it easier to attract future investments. However, this choice may limit funds for research and development, as focusing solely on reinvesting profits can hinder innovation and expansion opportunities, particularly in a rapidly evolving industry.