CHAPTER 41 BUSINESS GROWTH Flashcards Preview

EDEXCEL THEME 3 ECONOMICS > CHAPTER 41 BUSINESS GROWTH > Flashcards

Flashcards in CHAPTER 41 BUSINESS GROWTH Deck (14)
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1
Q

Backward vertical integration

A

A joining together into one firm of two or more firms where the purchaser mergers with one or more of its suppliers.

2
Q

Conglomerate integration or merger

A

A joining together into one firm of two or more firms producing unrelated products.

3
Q

Demerger

A

When a firm splits into two or more independent businesses.

4
Q

Divorce of ownership from control

A

Occurs when the managers and directors of a business are a different group of people from the owners of the business.

5
Q

Forward vertical integration

A

A joining together into one firm of two or more firms where the supplier mergers with one or more of its buyers

6
Q

Horizontal integration or horizontal merger

A

A joining together into one firm of two or more firms in the same industry at the same stage of production.

7
Q

Market niche or niche market

A

A small segment of a much larger market.

8
Q

Merger, amalgamation, integration or takeover

A

The joining together of two or more firms under common ownership.

9
Q

Not-for-profit organisations

A

Organisations that do not have making a profit as a goal but use any profit or surplus they generate to support their aims

10
Q

Organic or integral growth

A

A firm increasing its size through investment in capital equipment or an increased labour force.

11
Q

Private sector organisations

A

Organisations that are owned by individuals or companies and not the state.

12
Q

Public sector organisations

A

Organisations that are owned and controlled by the state.

13
Q

Synergy

A

When two or more activities or firms put together can lead to greater outcomes than the sum of the individual parts.

14
Q

Vertical integration or vertical merger

A

A joining together into one firm of two or more firms at different production stages in the same industry.