Business Chapter 7 Flashcards
Acquisition
The purchase of one company by another
Backward vertical integration
Joining with a business in the previous stage of production
Conglomerate
A very large business organisotion made up of many different businesses producing unrelated products
Forward vertical integration
Joining with a business in the next stage of production
Globalisation (of the market)
Where markets become so large that products could be sold anywhere in the world
Horizontal integration
The joining of businesses that are in exactly the same line of business
Integration
The joining together of two businesses as a result of a merger or takeover
Merger
Occurs when two (or more) businesses join together and operate as one
Regulatory intervention
Control by the relevant authorities such as the competition commission
Synergy
The combining of two or more activities or businesses which creates a better outcome than the sum of the individual parts
Takeover
The process of one business buying another
Vertical integration
The joining of two businesses at different stages of production
