The Growth Of A Business Flashcards
What does growth affect the most in a business?
The business’s orgnizational structure, capital, labour, use of technology and potential for export.
What effect does the growth of a business have on the orgnizational structure?
What effect does the growth of a business have on capital?
What effect does the growth of a business have on the labour?
What effect does the growth of a business have on the use of technology?
What effect does the growth of a business have on the potential for export?
What is Internal growth?
Occurs when a firm expands through the use of its own resources (profits).
What are three examples of internal growth?
- Opening other sales outlets.
- Increasing capital.
- Employing more workers.
What is external growth?
Generally occurs when one firm takes over or merges with another.
What are three examples of external growth?
- Joint Mergers
- Mergers (amalgamation)
- Takeovers (acquisitions)
What is a Joint Venture?
Involves two or more businesses pooling their resources and expertise to achieve a particular goal. Eg-
What is a Merger (amalgamation)?
Is the voluntary combining together of two or more business into a single business that is mutually agreed by the firms management and shareholders.
What is a Hortizontal Integration?
Whehn the businesses merged were formally competitors.
What is a Vertical Integration?
When the businesses merged were customer and supplier.
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