Size of Business Flashcards
revenue
the total value of sales made during the trading period = selling price * quantity sold
capital employed
the total value of a long term finance invested in the business
market capitalisation
the total value of a company’s issued shares
market share
sales of the business as a proportion of total market sales
organic growth
expansion of a business by means of opening new branches, shops, or factories
external growth
business expansion achieved integrating with another business by either merger or takeover
merger
an agreement by owners and managers of two businesses to bring them together in a new combined business. This is often referred to as a friendly merger
takeover
when a company buys more than 50% of the shares of another company and becomes its controlling owner
horizontal integration
integration with a business in the same industry and at the same stage of production
vertical integration
integration with a business in the same industry
forward vertical integration
vertical integration with a customer business
backward vertical integration
vertical integration with a supplier business
conglomerate integration
integration with a business in a different industry
synergy