Post-assessment G9 -Business Growth

Which is the correct definition for Merger?

• when one business buys out the owners of another business, which then becomes part of the ‘predator’ business

• when the owners of two businesses agree to join their businesses together to make one business

• When one business sells everything and starts something new.

• None of the above.

Which is the correct definition for Takeover?

• when one business buys out the owners of another business, which then becomes part of the ‘predator’ business

• when the owners of two businesses agree to join their businesses together to make one business

• When one business sells everything and starts something new.

• None of the above.

Gilbert, the makers of Benson and Walterman Pens, buys the Pinky Pen Company for

$285 million. State which type of integration is taking place.

• Vertical Forward

• Vertical Backward

• Horizontal integration

• Conglomerate Integration

What is a conglomerate merger?

• when one business merges with or takes over a business in a completely different industry.

• when one business buys out the owners of another business, in the same industry

• when one business buys out the owners of another business in the same industry- moving vertical forward

• None of the above

Which of the following is an example of horizontal integration between two businesses?

• An oil company and an insurance company merge

• A shoe shop buys out the factory making shoes

• A steel firm takes over a coal mine that supplies coal

• Coca-Cola takes over a small soft drink business