Business Growth (AQA A-Level Business): Quizzes

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External Growth
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What is the key advantage of external growth over organic growth?

Speed of expansion

In a merger, what happens to the shares of the newly merged company?

Transferred to both sets of shareholders

What percentage of shares must a business buy to gain a controlling stake in a takeover?

More than 50%

Why can hostile takeovers only happen with PLCs?

PLC shares are traded on stock exchange

What happens to business ownership in a joint venture?

No change of ownership occurs

What defines horizontal integration?

Same industry, same stage

A manufacturer merging with retail shops is an example of which type of integration?

Forward vertical

A hairbrush company merging with a hairspray company is which type of conglomerate merger?

Product extension merger

Why might a business combine with a company in another country?

To access established infrastructure

Which body can stop a merger if it restricts competition?

Competition and Markets Authority

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