Business Growth (AQA A-Level Business): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
External growth definition
External growth definition
Expansion by working with/taking over other businesses
Key advantage of external growth
Key advantage of external growth
Speed - achieve in months what takes years organically
Merger
Merger
Two companies join together to form a single company
Controlling stake in a takeover
Controlling stake in a takeover
More than 50% of total shares
Hostile takeover
Hostile takeover
PLC buys majority shares against directors' will
Joint venture key feature
Joint venture key feature
Businesses share resources, no ownership change
Horizontal integration
Horizontal integration
Firms in same industry at same stage of production
Forward vertical integration
Forward vertical integration
Combines with business further on in production process
Backward vertical integration
Backward vertical integration
Combines with business at earlier stage in production
Conglomerate merger
Conglomerate merger
Merger between unrelated firms