GROWTH STRATEGIES

When a company expands by purchasing and controlling the direct distribution or supply of its products

• Horizontal integration

• Vertical integration

• Acquisition

• Merger

All of the following are benefits of rapid growth EXCEPT

• Increased automation of processes

• Increased compensation for labour

• Improved marketing strategies

• Increased sources of capital available

Where one firm takes a controlling interest of another firm:

• Joint Ventures

• Mergers

• Acquisitions

• Franchising

When a business grants a licence to use its brand and reproduce its product.

• Joint Ventures

• Mergers

• Acquisitions

• Franchising

Expanding the product line is an example of what type of growth?

• Internal growth

• External growth

When a business buys up a firm operating in the same stage of production

• Horizontal integration

• Vertical integration

• Lateral integration

• Internal growth

Joint ventures, mergers and acquisitions are all examples of what type of growth?

• Internal

• External

• Organic

• Branding

Which of the following is NOT a benefit to mergers and acquisitions?

• Greater market share

• Synergy

• Diversification

• Redundancies

Venture capital is usually given in the form of money ONLY

• True

• False

Which of the following is NOT an advantage of a corporate-backed start-up:

• Market knowledge and experience

• Exposure to more networks

• Decreased risk of failure

• Increased cost of operations