Size of Business - JC2 - MT

Takeover: when a company buys more than ____ of the shares of another company and becomes the controlling owner of it

• 60%

• 30%

• 40%

• 50%

"integration with a business in the same industry but a customer of the existing business" is the definition of?

• Horizontal integration

• Vertical backward integration

• Vertical forward integration

• Conglomerate integration

"having control supplies of materials to competitors" is an important advantage of ?

• Horizontal integration

• Vertical forward integration

• Conglomerate integration

• Vertical backward integration

Horizontal integration can leads to bad publicity or monopoly investigation. Why?

• consumers suspect of uncompetitive activity and react negatively

• lack of clear focus and direction because the business is spread across more than 1 industry

• business is now able to control the promotion and pricing of its own products

• combined business may exceeds certain market share limits

Conglomerate integration provides more job security because?

• its can secures a secure outlet of for the firm's products- may now exclude competitors's products

• risks are spread across more than one industry

• consumers may obtain improved quality and more innovative products

• they may be more varied career opportunities

what are some financial problems with rapid growth

• expansion can be expensive

• takeover can be expensive

• additional fixed capital and working capital will be required

• all 3 are correct

Rapid growth won't lead to negative cash flow and an increase in long-term borrowing

• TRUE

• FALSE

marketing problem for rapid growth

• all 3 are correct

• may not succeed if market strategies are not suitably adapted

• adopt focused marketing strategies for each specific product or each country

• existing management may be unable to cope with problems

name one possible way that help business if the original owner started to lose control due to rapid growth

An important characteristic of a successful entrepreneur is that:

• they are always rich
• they are risk takers
• they are usually shy
• they want to avoid hard work