Enterprise, Business Growth And Size Flashcards
Entrepreneur
Is a person who organises operates and takes risks for new business are risk takers, optimistic self, confident innovative independent effective communicative hard-working persistent.
Business plan
Documents containing the business objectives and important details about the operation. With this, it is much easier to run a business.They won’t lose sight of an objective and help motivation
Measuring the size of a business
By number of employees value of output, value sales, value Of capital employed, profit.
Internal business growth
When a business expands its existing operations. For example, food chain opens a new branch in another country.
External business growth
When a business takes over or merges with another business.
Horizontal merger
When one thumb merges with or takes over another firm in the same industry at the same stage of production.
Vertical merger
When one firm merges with all takes over another firm in the same industry, but at a different stage of production.
Backward merger
Mergers or takes over another firm in the same industry but at a stage of production that is behind the predator firm
Forward merger
Mergers or takes over another firm in the same industry, but that is ahead of the preditor firm in production
Conglomerate merger
When a firm mergers swift all takes over another firm in a completely different industry. For example, a clothing store with a furniture store.
Why some businesses stay small
The type of industry, it could be small market size, For example number of customers are small. Owner objectives, for example prefers to keep it small
Why business is fail
Poor management, for example, lack of experience. Over expansion, for example, failure to plan for change. Poor financial management
