External Expansion Flashcards
1
Q
What is External Expansion?
A
expanding by working with other businesses.
2
Q
What is a Merger?
A
When 2 firms join together to form a new firm
3
Q
What is a Takeover?
A
when an existing firm expands by buying more than half the shares in another firm
4
Q
Does External or internal expansion grow quicker?
A
External
5
Q
What is the advantage of joining with a supplier?
A
allows a firm to control the supply, cost and quality of its raw materials
6
Q
What is the advantage of joining with one of its competitors?
A
more economies of scale and a bigger market share.
7
Q
A
