GROWTH AND LOCATION OF BUSINESS

Question 1

Merger

Answer 1

Two or more businesses join together to make one larger business.

Question 2

Take-over

Answer 2

One business buys control of another.

Question 3

Horizontal

Answer 3

Merger or takeover of another business involved in the same industry at the same stage of production.

Question 4

Vertical

Answer 4

Merger or takeover of another business involved in the same industry at a different stage of production. The merger or takeover can be backwards or forwards.

Question 5

Diversification

Answer 5

A process of spreading risks by reducing dependence on one particular product or service.

Question 6

Conglomerate

Answer 6

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

Question 7

Footloose

Answer 7

A business is able to locate anywhere it chooses.

Question 8

Grants

Answer 8

Payment of money for a specific purpose, which does not usually have to be paid back. Grants may be available from the EU, central government or local authorities to help businesses improve employment opportunities.

Question 9

Infrastructure

Answer 9

The name given to basic services needed by a business in order for it to operate effectively. Such things as roads, power supplies, telephones and after supplies would be included under this heading.

Question 10

Greenfield site

Answer 10

Industrial or commercial development in an area that has previously not been built on.

Question 11

Brownfield site

Answer 11

Industrial or commercial development that was previously derelict or occupied by another industrial activity.