3.1.1: Key Terms Flashcards
1
Q
Firm
A
- An organisation that brings together factors of production in order go produce output
2
Q
Horizontal Merger
A
- A merger between two firms at the same stage of production in the same industry
3
Q
Horizontal integration
A
- the result of a horizontal merger
4
Q
Vertical Merger
A
- a merger between two firms in the same industry, but at the different stages of the production process
5
Q
Backward Integration
A
- a process under which a firm merges with a firm that is involved in an earlier part of the production chain
6
Q
Forward Integration
A
- a process under which a firm merges with a firm that is involved in a later part of production chain
7
Q
Conglomerate Merger
A
- a merger between two firms operating in different markets
8
Q
Multinational Corporation
A
- a firm that conducts its operation in a number of countries
9
Q
A
