3.1.3 - Demergers Flashcards
1
Q
Reasons for demergers
A
To focus on the core business
To increase profits if one of the businesses is at a loss
To avoid diseconomies of scale
To meet the demands of regulators
2
Q
Impacts of demergers
A
On workers - some might lose their jobs but some might increase job security due to a reduce in conflict in cultures
On consumers- greater competition leads to lower rces and more focused businesses leads to better consumer needs
3
Q
What is a real life example of a demerger and how it affects consumers
A
Lloyds TSB split left consumers without a local bank branch and made it hard to access finance
