Enterprise, business growth and size

Question 1

Entrepreneur

Answer 1

Is the person who organises, operates and takes the risk for a new business venture.

Question 2

A business plan

Answer 2

Is a document containing the business objectives and important details about the operations, finance and owners of the new business.

Question 3

Capital employed

Answer 3

Is the total value of capital used in the business.

Question 4

Internal growth

Answer 4

Occurs when a business expands its existing operations.

Question 5

External growth / integration

Answer 5

Is when a business takes over or merges with another business.

Question 6

A takeover / acquisition

Answer 6

Is when a business buys out the owners of another business, which then becomes a part of the ‘predator’ business.

Question 7

What is a ‘predator’ business?

Answer 7

Is the business which has taken over another business.

Question 8

A merger

Answer 8

Is when the owners of two businesses agree to join their businesses together to make one business.

Question 9

Horizontal integration

Answer 9

Is when one business merges with or takes over another one in the same industry at the same stage of production.

Question 10

Vertical integration

Answer 10

Is when one business merges with or takes over another one and the same industry but at a different stage of production. Vertical integration can be forward or backward.

Question 11

Conglomerate integration / diversification

Answer 11

Is when one business merges with or takes over a business in a completely different industry.