GCSE OCR Business Studies A292 - Business growth

Question 1

When two or more businesses join together is known as?

Answer 1

Merger

Question 2

What is the name given to when one business buys control of another business

Answer 2

Take-over

Question 3

What is horizontal growth?

Answer 3

It is the merger or takeover of another business involved in the same industry at the SAME stage of production

Question 4

What is Vertical growth?

Answer 4

It is the merger or takeover of another business involved in the same industry at the DIFFERENT stage of production.
The merger or takeover can be backwards or forwards.

Question 5

When a business diversifies it can be beneficial because?

Answer 5

It allows them to spread risk, as dependency on one particular product or service is reduced

Question 6

Merger or takeover of another business which is involved in a totally different business activity is called?

Answer 6

Conglomerate

Question 7

Forward vertical integration is…

Answer 7

When a business takes over or merges with another business which provides an outlet for the good/service produced

Question 8

Backwards vertical integration is…

Answer 8

When a business takes over or merges with a supplier