1 Business Growth Flashcards
What is Organic Growth?
Concerned with the internal growth of a business, for example, by increasing its sales.
What is External Growth?
The growth of a business by takeover or merger.
What is a Merger?
Where two or more businesses agree to join to become one business.
What is a Takeover?
Where a business takes a controlling interest in another business, for example, by buying more than 50% of the shares in it.
What is Horizontal Growth?
A merger or takeover where the two businesses are involved in a similar operation.
What is Diversification?
When a business merges with or takes over another business with which it has no connection.
What is Backwards-Vertical Growth?
When a business merges with, or takes over, a business that supplies it with goods or services.
What is Forward Vertical Growth?
When a business merges with, or takes over a business that it supplies goods or services to.
