Enterprise, Business Growth, and Size PDF

3. Enterprise, business growth and size A person who organises, operates Entrepreneur and takes the risk for a new...

3. Enterprise, business growth and size A person who organises, operates Entrepreneur and takes the risk for a new business venture A document containing the business objectives and important Business plan details about the operations, finance, and owners of the new business The total value of capital used in the Capital employed business Internal growth occurs when a Internal growth business expands its existing operations External growth is when a business takes over or merges with another External growth business. It is often called intergration as one business is intergrated into another one https://knowt.com/flashcards/fa478930-469a-4c0a-a0ab-0107fd0894a9 25/12/2024, 20 03 Page 1 of 2 :  Integration The process of one company acquiring another company and merging the operations A takeover or acquisition is when one busuiness buys out the owners of another business, which then Takeover becmes part of the 'predator' business (the business which has taken it over) A merger is when the owners of two businesses agree to join their Merger businesses together to make one business When one business merges with or takes over another one in the same Horizontal integration industry at the same stage of production When one business merges with or takes over another one in the same Vertical integration industry but at a different stage of production. Vertical intergration can be forward or backward When one business merges with or takes over a business in a Conglomerate integration completely different industry. This is also known as diversification https://knowt.com/flashcards/fa478930-469a-4c0a-a0ab-0107fd0894a9 25/12/2024, 20 03 Page 2 of 2 :