1.3 Bussiness Studies

Which is an example of Internal growth?

• When two businesses agree to join together

• When a business expands overseas

• When a business acquires a controlling interest in another business

• When one business buys another business

Which of the following is an example of a horizontal merger/takeover?

• A chocolate producer buys another chocolate producer

• A chocolate producer buys a cocoa farm

• A chocolate producer buys a chain of coffee shops

• A chocolate producer buys a car producer

When a business merge or take over business in different sector

• Horizontal

• Vertical

• Conglomerate

When Samsung is taking over another mobile phone company

• horizontal take over

• 
  vertical forward take over

• vertical backward take over

• conglomerate

When shoe retailers take over shoe manufacturing company

• horizontal forward

• horizontal backward

• vertical forward

• vertical backward

An example of Internal growth is

• Merger

• Acquisition

• Launching new products

• take over

What is a business plan?

• Written document that only outlines the business practices of the new business.

• Written document that describes the financial aspects of the business.

• Written document that only describes the ownership of the business.

• Written document that describes all the steps necessary for opening and operating a successful business.

Why do you need a business plan?

• To explain your idea

• the ability to get financing.

• it's a road map that sets objectives and goals for the business.

• To help reduce the risk of business failure.

• All of the above.