1.7 Expanding a Business Flashcards
What is internal growth?
Internal growth (also known as organic growth) occurs when a business gets bigger by selling more of its products.
What is external growth?
External growth (also known as integration) occurs when a business gets bigger by joining or buying other businesses.
What is a market capitalisation?
The market capitalisation of a company measures the
value of all its shares
What is a franchise?
A franchise occurs when a franchisor sells the rights to its products to a franchisee; this is usually
in return for a fee and percentage of turnover.
What is a franchisee?
A franchisee buys a franchise usually in return for a fee and percentage of turnover.
What is a franchisor?
A franchisor sells a franchise usually in return for a fee and percentage of turnover.
What is a takeover?
A takeover occurs when one business buys control
of another one.
What is a merger?
A merger occurs when two or more businesses
join together to form a new business.
What is outsourcing?
Outsourcing occurs when a business uses another business to produce for it.
What is E-commerce?
E-commerce (or electronic commerce) is the act of buying or selling a product using an electronic system such as the internet.
