N6 Bus Mgt Methods of Growth

What is another name for internal growth?

• Organic

• Enlargement

• Lateral

• Merger

Which of the following is NOT a method of internal growth?

• Buying over a rival company

• Launching a new product or service

• Opening a new branch in another town

• Hiring more staff to extend opening hours

• Introducing e-commerce

What type of growth is integration?

• Internal

• External

What type of integration is this an example of - TSB agreeing to join forces with RBS

• Takeover

• Merger

• Backward Vertical Integration

• Forward Vertical Integration

What is another name for a takeover?

• Acquisition

• Divestment

• Merger

• Backward vertical integration

What word describes a takeover where the smaller company is not happy with what is happening?

• Hostile

• Aggressive

• Strategic

• Market drive

What type of growth was this an example of - Google bought YouTube

• Takeover

• Merger

• Diversification

• Backward vertical integration

Identify which of the following statement(s) describe an advantage of a takeover? You can choose more than one.

• Business gains market share and resources of the other business

• A change of name can put off loyal customers

• It can be expensive to buy if a premium is added to share price

• Economies of scale can be achieved

Identify which of the following statement(s) describe a disadvantage of a takeover? You can choose more than one.

• Integration may lead to job losses and stress with employees

• Risk of business failure is spread

• Competition is reduced

• May be subject to an investigation by the Competition and Markets Authority

Which statement(s) below can apply to merger?

• It is friendlier than a takeover

• It can result in a name change and new logo

• Economies of scale can be achieved

• Customers benefit as there is increased competition