Edexcel A Level · 9EC0 · Theme 3: Business behaviour and the labour market

3.1.3 Demergers

Everything you need for questions on demergers, in the words examiners reward. An interactive seven-step lesson goes with it.

What's on this sheet

  1. What is a demerger?
  2. Why firms demerge
  3. Impact on stakeholders
  4. Classic question: are demergers good for stakeholders?
  5. Side 2: practice tasks, where the marks go, and exam-style questions
  6. Separate answer key

The lesson in seven steps

  1. The break-up decision
  2. Why split?
  3. Who wins, who loses?
  4. Demerger maths
  5. Splitting up
  6. Build the chain
  7. Exam practice

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