External growth (AQA GCSE Business): Quizzes
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Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What is external growth?
What is external growth?
Growing through mergers or takeovers
In a takeover, what % of shares must be acquired for controlling interest?
In a takeover, what % of shares must be acquired for controlling interest?
More than 50%
What is a hostile takeover?
What is a hostile takeover?
When the acquired business resists
How do mergers differ from takeovers?
How do mergers differ from takeovers?
Mergers are collaborative & voluntary
What are economies of scale?
What are economies of scale?
Lower costs per unit from growth
When do diseconomies of scale occur?
When do diseconomies of scale occur?
When businesses become too large
How does reducing competition benefit merged businesses?
How does reducing competition benefit merged businesses?
Higher prices & more security
What is a major challenge when businesses merge?
What is a major challenge when businesses merge?
Culture clashes reduce success
How do mergers spread risk?
How do mergers spread risk?
By offering different products
Why did Facebook acquire WhatsApp in 2014?
Why did Facebook acquire WhatsApp in 2014?
For international markets & youth
How much did Microsoft pay for LinkedIn in 2016?
How much did Microsoft pay for LinkedIn in 2016?
$26.2 billion
What position did Heinz/Kraft achieve after their 2015 merger?
What position did Heinz/Kraft achieve after their 2015 merger?
Third-largest US food company