Methods Of Growth(external growth)

Question 1

Merger

Answer 1

This is where two businesses agree to become integrated to form one business joint ownership

Question 2

Take over

Answer 2

This is where one business buys another business.
The manager of the Dominant business will be in control.
This form of external growth can be hostile

Question 3

Advantages of external growth

Answer 3

Can be achieved quickly
The expertise of both businesses can be shared
The business has access to the customers of both businesses.
It can allow a business to establish itself in a new market quickly.