Business Growth and Integration Concepts
11 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is an entrepreneur?

A person who organises, operates and takes the risk for a new business venture.

What is a business plan?

A document containing the business objectives and important details about the operations, finance, and owners of the new business.

What does 'capital employed' refer to?

The total value of capital used in the business.

Describe internal growth.

<p>Internal growth occurs when a business expands its existing operations.</p> Signup and view all the answers

What characterises external growth?

<p>External growth is when a business takes over or merges with another business.</p> Signup and view all the answers

Explain what integration means in the context of external growth.

<p>The process of one company acquiring another company and merging the operations.</p> Signup and view all the answers

What is a takeover or acquisition?

<p>A takeover or acquisition is when one business buys out the owners of another business, which then becomes part of the 'predator' business (the business which has taken it over).</p> Signup and view all the answers

Define a merger.

<p>A merger is when the owners of two businesses agree to join their businesses together to make one business.</p> Signup and view all the answers

What is horizontal integration?

<p>When one business merges with or takes over another one in the same industry at the same stage of production.</p> Signup and view all the answers

Explain vertical integration.

<p>When one business merges with or takes over another one in the same industry but at a different stage of production. Vertical integration can be forward or backward.</p> Signup and view all the answers

What is conglomerate integration?

<p>When one business merges with or takes over a business in a completely different industry. This is also known as diversification.</p> Signup and view all the answers

Flashcards

Entrepreneur

A person who starts, manages, and takes on the risk of a new business venture.

Business Plan

A formal document outlining a business's goals, operational details, financial plans, and ownership structure.

Capital Employed

The total value of all the resources used in a business, including assets like money, equipment, and property.

Internal Growth

When a business grows by expanding its existing operations, such as opening new branches or increasing production.

Signup and view all the flashcards

External Growth

When a business grows by acquiring or merging with another business, leading to a larger entity.

Signup and view all the flashcards

Integration

The process where one company acquires another and combines their operations.

Signup and view all the flashcards

Takeover

When one business buys out the owners of another business, incorporating the acquired business into itself.

Signup and view all the flashcards

Merger

When two companies come together by mutual agreement, combining their operations to create a new, single business.

Signup and view all the flashcards

Horizontal Integration

When a business combines or acquires another business in the same industry and at the same stage of production.

Signup and view all the flashcards

Vertical Integration

When a business acquires or merges with another business in the same industry, but at a different stage of production, such as a supplier or distributor.

Signup and view all the flashcards

Conglomerate Integration

When a business merges with or acquires a business in a completely different industry to diversify its operations.

Signup and view all the flashcards

Study Notes

Enterprise, Business Growth, and Size

  • Entrepreneur: A person who organizes, operates, and risks a new business venture.
  • Business Plan: A document outlining business objectives, operational details, finances, and ownership of a new business.
  • Capital Employed: The total value of capital used within a business.
  • Internal Growth: Business expansion through existing operations.
  • External Growth: Expansion through acquisition or mergers of businesses. Integration is a term often used for this type of expansion.

Types of External Growth

  • Integration: The process of merging one company's operations with another, acquiring one business.
  • Takeover: One business purchases another's ownership and operational control.
  • Merger: Two businesses agree to combine their operations into one new organization.
  • Horizontal Integration: Combining companies within the same industry and stage of production.
  • Vertical Integration: Merging businesses in the same industry but at different production stages (forward or backward).
  • Conglomerate Integration: Combining businesses in completely different industries. Also known as diversification.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Enterprise, Business Growth, and Size PDF

Description

This quiz explores key concepts related to enterprise growth, including types of integration and expansion strategies. Understand the significance of internal vs. external growth as well as the terminology involved in mergers and takeovers. Ideal for students studying business management and entrepreneurship.

More Like This

External Expansion in Business
12 questions

External Expansion in Business

CoolestProbability avatar
CoolestProbability
Enterprise Growth and Business Strategies
16 questions

Enterprise Growth and Business Strategies

SuperbNourishment avatar
SuperbNourishment
Croissance d'Entreprise et Stratégies
16 questions

Croissance d'Entreprise et Stratégies

DecisiveAltoSaxophone avatar
DecisiveAltoSaxophone
Use Quizgecko on...
Browser
Open
Browser
Browser