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Business Growth Strategies

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Questions and Answers

What is a merger?

The process of selling off assets

When one firm takes control of another

A business agreement allowing franchising

When one firm combines with another, resulting in the loss of one business identity (correct)

What is a take-over?

When one firm takes control of another, resulting in the loss of one business identity (correct)

Transferring tasks to a third party

When one firm combines with another

A business agreement allowing franchising

What is franchising?

A business agreement that allows the use of an established business name to sell their products or services.

What characterizes a multi-national corporation (MNC)?

It has branches (subsidiaries) in more than one country. Signup and view all the answers

What is divestment?

The process of selling off assets. Signup and view all the answers

What does outsourcing involve?

Transferring tasks to a third party. Signup and view all the answers

Study Notes

Ways of Achieving Growth

Merger: One firm combines with another.
Take-over: One firm gains control of another, losing the original firm's identity.
Franchising: A business agreement allowing the use of an established business's name and products/services.
Become a MNC (Multinational Corporation): A company with branches in multiple countries. A key feature is setting up production facilities in more than one country.

Funding Growth

Divestment (Asset Stripping): Selling off assets to raise capital.
Outsourcing: Using external providers for specific tasks.
Debt Financing: Borrowing money from lenders.
Equity Financing: Raising capital through the sale of shares.

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Description

Explore different ways businesses can achieve growth, including mergers, take-overs, and franchising. This quiz also covers various funding methods such as debt and equity financing. Test your understanding of these essential business concepts.