External Growth ( Inorganic)(yr10) Flashcards
1
Q
What are two ways a business could take over ?
A
Merger
Takeover
2
Q
What is a merger ?
A
Two or more business agree to join together to form a larger business.
It is a quick way for a business to grow
3
Q
What is a take over ?
A
One business buys control of another.
For a limited company this would mean buying more than 50% or the shares
This can lead to quick growth
4
Q
What are three types of merger and takeover?
A
Horizontal
Vertical
Diversification
