Business Growth Flashcards
1
Q
What is internal growth?
A
Expansion within the same business;
higher sales, more branches, or breaking into new markets
2
Q
What is external growth?
A
Growth through integration;
one business combines with another business, either by a merger or by a take-over
3
Q
What is a merger?
A
Two businesses join together to form a new business
4
Q
What is a take-over?
A
One business buys over half the shares in another business
5
Q
What is hostile take-over?
A
A take-over that is not wanted by the directors of the company that is being taken over
6
Q
What are the reasons why business might stay small?
A
- The owners want to keep control
- Easier to maintain quality in a smaller business
- Maybe not enough demand for more products
- The owners are happy with what they are earning from a small business
- Too risky to expand the business
- Too expensive to expand the business
