Section 1: U3-4-5

Someone who organises, operates and takes the risk for a new business venture.

• Employee

• Manager

• Investor

• Entrepreneur

The objectives and details of the operations, finance and owners of a new business.

• Business plan

• Marketing plan

• Production plan

• Human resource strategy

The total value of capital used in a business

• Total sales revenue of a business

• Total profit of a business

• Total number of employees

• Capital employed

The business expands by merging with or taking over another business.

• Merging

• Enterprises

• External growth

• Internal growth

The business expands its existing operations, e.g. a retailer opening more shops.

• Enterprises merge

• Enterprises acquire another shareholder

• External growth

• Internal growth

A business buys out the owners of another business.

• Shareholders

• Enterprises

• Takeover

• Operations

The owners of businesses agree to join their firms together to form one business.

• Takeover

• Industry

• Integration

• Merger

The business integrates with another in the same industry but at a different stage of production – towards suppliers is backward vertical integration and towards the market/customer is forward vertical integration.

• Conglomerate integration

• Vertical integration

• Horizontal integration

The business integrates with another but in a different industry (also known as diversification) – such as an insurance company merging with a food-processing business.

• Conglomerate integration

• Vertical integration

• Horizontal integration

The business integrates with another in the same industry at the same stage of production – such as two fashion shops.

• Conglomerate integration

• Vertical integration

• Horizontal integration