People In A Business Flashcards
Growth in a business
The increase of size and status in a business
Why people want growth
To expand their business
Merger
Two companies coming together
Organic
The growth of an individual business- internal
Inorganic
External growth- links to merger and takeover
Benefit of organic growth?
Less risk than external growth and allows the business to grow at a more sensible rate
The four types of intergration
Forward vertical, horizontal, backward vertical, horizontal
Why franchising is a good method of growth
It can help them grow nationally and internationally
How stakeholders are affected by Growth
They gain more money than they put into the business, causing them to have brought a successful share
What is an ltd
Shares can only be brought by invitation only. Limited liability
What is a plc
Shares can be brought by anyone on the stock exchange- usually a large business. Public liability
What is Location
Where a business is located
Factors that influence the location of a business
Nearby transport, competition, population density
Why is location important
If they are in a location with low population there will be low numbers of customers. Limiting the business’ possible growth.
Aims and objectives ?
An aim is what they want to do, the objective is how they’re going to achieve it
Why do businesses have aims and objectives
They are a way of having something to work towards
Forward vertical intergration
Forward integration is a business strategy that involves a form of vertical integration whereby business activities are expanded to include control of the direct distribution or supply of a company’s products. This type of vertical integration is conducted by a company moving down the supply chain.
Backward vertical intergration
Backward integration is a form of vertical integration that involves the purchase of, or merger with, suppliers up the supply chain. Companies pursue backward integration when it is expected to result in improved efficiency and cost savings.
PUblic limited
A public limited company (PLC) is the legal designation of a limited liability company which has offered shares to the general public and has limited liability.
Private limited
A private limited company, or LTD, is a type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 50 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when it incorporates.
