Business Terminology Quiz
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Questions and Answers

What is the purpose of diversifying a company's products?

  • To acquire a controlling interest in another company
  • To reduce fees for services
  • To increase market capitalization
  • To become more competitive by selling different products (correct)
  • What is the term for a company that owns or controls several smaller businesses selling different products or services?

  • Listed company
  • Pension fund
  • Subsidiary
  • Conglomerate (correct)
  • What is the benefit of synergy in a company?

  • Increasing market capitalization
  • Acquiring a controlling interest in another company
  • Reducing fees for services
  • The combined power or value of a group of things working together (correct)
  • What is the term for the total value of a company on the stock exchange?

    <p>Market capitalization</p> Signup and view all the answers

    What is the term for a company that is owned by a larger parent company?

    <p>Subsidiary</p> Signup and view all the answers

    What is the term for the acquisition of a key component of a company's supply chain?

    <p>Vertical integration</p> Signup and view all the answers

    Study Notes

    Business Terminology

    • Diversify: to become more varied or different, e.g., by selling different products
    • Retail outlets: places where goods are sold, including shops, stores, kiosks, and markets

    Company Ownership

    • Controlling interest: a sufficient number of stocks in a company to decide what to do at an Annual General Meeting
    • Listed companies: public companies whose stocks are traded on a stock exchange
    • Conglomerates: companies that own or control several smaller businesses selling very different products or services
    • Subsidiaries: companies that are owned by a larger parent company

    Financial Concepts

    • Fees: amounts of money paid for services
    • Market capitalization: the total value of a company on the stock exchange (the price of all its stocks)
    • Pension fund: a sum of money reserved to pay a company's retired employees

    Business Strategies

    • Synergy: the combined power or value of a group of things working together, which is greater than the total power or value achieved when each is working separately
    • Horizontal integration: when one firm acquires another firm operating in the same industry or producing the same line of products
    • Vertical integration: involves the acquisition of a key component of a company's supply chain, either upstream or downstream from its own core competency

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    Test your knowledge of business terms and concepts, including retail, finance, and company structures.

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