2.1 Flashcards
What is innovation?
Bringing a new idea to the market
Example: Warburtons’ clever idea of an extra-large crumpet
What is inorganic (external) growth?
Growing by buying up other businesses or by merging with a business of roughly equal size
Define merger.
When two businesses of roughly equal size agree to come together to form one big business
What is organic (internal) growth?
Growth from within the business, such as creating and launching successful new products
What does R&D stand for?
Research and development
What is the purpose of research and development (R&D)?
The scientific research and technical development needed to come up with successful new products
What is a takeover?
Obtaining control of another business by buying more than 50 per cent of its share capital
What is flotation?
Listing company shares on the stock market, allowing anyone to buy the shares. This means the price can float freely (up and down).
What defines a public limited company (plc)?
A company with at least £50,000 of share capital that can advertise its shares to outsiders and is, therefore, allowed to float its shares on the stock market.
What is free trade?
Trade with no barriers such as tarriffs
