methods of growth - funding Flashcards
1
Q
what are the seven methods of funding growth?
A
- retained profit
- divestment
- deintegration
- asset stripping
- buy-in
- buy-out
- outsourcing
2
Q
retained profit
A
a business can decide not to distrubute profit to its shareholders and use it to reinvest into the business
3
Q
divestment
A
when a business sells off an asset to raise finances to grow
4
Q
deintegration
A
selling off a part of a business that had previously been integrated
5
Q
asset stripping
A
when a business is purchased for the value of its assets which are then sold for profit
6
Q
buy-in
A
when managers not employed by the firm purchase the business as they believe they can run it more profitably
7
Q
buy-out
A
when managers or employees who are currently employed by the business purchase the business from the owners
8
Q
outsourcing
A
when a firm hires another business to perform some of its activities
