Higher BM - Objectives and Structures

An advantage of positive Corporate Social Responsibility is:

• Businesses staff are happy at work.
• Business gains a good reputation and therefore more customers.
• Business is cooperating with government and will not be fined.
• Business gains from economies of scale

Two strategic objectives of a plc are:

• To maximise profits and expand and grow.
• To provide a good service and provide for the local community.
• To be socially aware and improve the lives of others.
• To operate as efficiently as possible and minimise all costs.

Benefiting from bulk buying and being able to run specialist departments is called:

• Profit Maximisation
• Economies of Scale
• Globalisation
• Integration

Launching new products, opening new branches and hiring more staff is called

• Merger
• Takeover
• Forward Vertical Integration
• Organic Growth

When a firm buys 50%+ of another company's share capital this is called

• Organic Growth
• Merger
• Takeover
• Backward Vertical Integration

An agreement to bring two companies under the one board of directors is called:

• Takeover

• Backward Vertical Integration

• Forward Vertical Integration

• Merger

When one firm merges with another at the same stage of the production chain, this is called:

• Organic Growth
• Horizontal Integration
• Forward Vertical Integration
• Backward Vertical Integration

When a business takes over a supplier, this is called:

• Backward Vertical Integration
• Horizontal Integration
• Forward Vertical Integration
• Organic Growth

When a business takes over the selling stage, this is called:

• Organic Growth
• Horizontal Integration
• Forward Vertical Integration
• Backward Vertical Integration

Diversification is when a business:

• merges with another
• expands the number of goods and services they provide
• increases the number of sales outlets they have
• operates in more than one country