Business Studies: Growing a business

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Created by: alexgeddes2205
Created on: 03-01-17 20:00

Organic

Business grows alone without mergers or takeovers (slower but safer)

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Inorganic

Business grows via integration with other businesses (quicker but more expensive)

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Merger

Where two businesses join together to form as one (inorganic)

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Takeover

One business buys out another business, can be friendly or hostile depending on if owners want to sell.

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Horizontal Integration

Merge with or takeover a business that is in the same industry. (most common)

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Forward Integration

Merge with or takeover a business that is further back in the production line. (a farm takes over a village shop)

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Vertical Backward Integration

Same industry but further back in the production line (walkers taking over a production line)

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Conglomerate / Diversification

Merge with or takeover a business in a completely new industry. (Virgin)

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Public Limited Company (plc)

Owned by shareholders who are paid through dividends.

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Social Costs

The cost to society through and individual business or action. Includes internal and external costs.

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Social Benefits

The benefit to society through an individual business or action. Includes internal and external benefits.

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Social Responsibility

The duty if a firm to behave in an ethical way towards it's stakeholders.

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Other cards in this set

Card 2

Front

Business grows via integration with other businesses (quicker but more expensive)

Back

Inorganic

Card 3

Front

Where two businesses join together to form as one (inorganic)

Back

Card 4

Front

One business buys out another business, can be friendly or hostile depending on if owners want to sell.

Back

Card 5

Front

Merge with or takeover a business that is in the same industry. (most common)

Back

View more cards

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Business Studies: Growing a business