CHAPTER 41 BUSINESS GROWTH Flashcards
Backward vertical integration
A joining together into one firm of two or more firms where the purchaser mergers with one or more of its suppliers.
Conglomerate integration or merger
A joining together into one firm of two or more firms producing unrelated products.
Demerger
When a firm splits into two or more independent businesses.
Divorce of ownership from control
Occurs when the managers and directors of a business are a different group of people from the owners of the business.
Forward vertical integration
A joining together into one firm of two or more firms where the supplier mergers with one or more of its buyers
Horizontal integration or horizontal merger
A joining together into one firm of two or more firms in the same industry at the same stage of production.
Market niche or niche market
A small segment of a much larger market.
Merger, amalgamation, integration or takeover
The joining together of two or more firms under common ownership.
Not-for-profit organisations
Organisations that do not have making a profit as a goal but use any profit or surplus they generate to support their aims
Organic or integral growth
A firm increasing its size through investment in capital equipment or an increased labour force.
Private sector organisations
Organisations that are owned by individuals or companies and not the state.
Public sector organisations
Organisations that are owned and controlled by the state.
Synergy
When two or more activities or firms put together can lead to greater outcomes than the sum of the individual parts.
Vertical integration or vertical merger
A joining together into one firm of two or more firms at different production stages in the same industry.
