Business Growth

What is a merger?

• A merger is when two or more businesses join together to form one company.

• A merger is when a company acquires another company without any changes.

• A merger is a legal agreement to dissolve a company.

• A merger is a type of investment strategy used by individuals.

What is internal growth in a business?

• Internal growth is when a company uses its own resources to expand, acquiring new assets or establishing new products.

• Internal growth occurs when a business merges with another company to increase market share.

• Internal growth is achieved through external investments and partnerships with other firms.

• Internal growth refers to the reduction of a company's workforce to cut costs.

What can happen during a hostile acquisition?

• A company gains control over another without its consent.

• A company merges with another voluntarily.

• A company is bought out by its employees.

• A company is forced to sell its assets.

What is an acquisition or takeover?

• A process where a company merges with another company to form a new entity.

• An acquisition is when one business buys another, which can be a complete takeover or buying shares.

• A legal agreement to share resources between two companies without any financial transaction.

• A strategy to reduce competition by forming alliances with other businesses.

What is external growth in a business?

• A process where a business grows by increasing its internal resources.

• A strategy that involves reducing costs to improve profitability.

• When a business grows rapidly through integration with other organizations, often through mergers or acquisitions.

• A method of expanding a business by opening new locations without partnerships.

What is vertical integration?

• A business strategy where a company merges with another at the same stage of production.

• A business strategy where a company joins with another that operates at a different stage of production.

• A method of increasing market share by reducing prices.

• A process of outsourcing production to third-party manufacturers.

What is a joint venture?

• A type of business merger where two companies become one.

• A collaboration where companies jointly invest in a separate business or project.

• A legal agreement to share resources without forming a new entity.

• A method of acquiring another company through stock purchase.

What is horizontal integration?

• A strategy where businesses at different stages of production merge.

• A process where companies in the same industry but different markets collaborate.

• Horizontal integration happens when businesses at the same stage of production join together.

• A method of expanding a business by acquiring suppliers.

What is the advantage of large companies in a free market?

• They can take advantage of economies of scale, reducing unit costs and selling products at lower prices.

• They have more flexibility to adapt to market changes than smaller companies.

• They can easily monopolize the market and eliminate competition.

• They are able to innovate faster than smaller companies due to more resources.

What does the European Union do to ensure fairness in a free market?

• The EU has competition policies that approve mergers and acquisitions of large companies.

• The EU sets fixed prices for all goods and services in member countries.

• The EU prohibits all forms of competition among businesses.

• The EU provides subsidies to all businesses regardless of performance.