Unit 2.1

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What is organic growth?
When a business is growing by finding more customers for their products.
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What is inorganic growth?
A business expands by taking over or merging with another business.
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What is a Merger?
An agreement between two businesses to combine and operate as one company.
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What is a Takeover?
When one business purchases another business from its owners.
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What is a Monopoly?
A monopoly is when a business establishes a market share of 25% or higher
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What is a Limited Company
A business that has gone through incorporation, so the owners have limited liability.
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What is a dividend?
A payment made to shareholders from the company's profits usually made annually.
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What is the divorce between ownership and control?
Most shareholders in a PLC are not involved in the day running of the company. They hire managers to control the business, the shareholders and the managers may have different visions and objectives.
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What are ethical objectives?
when a business aims to do the right thing according to the values and beliefs of its managers, even if this isn't the most profitable way.
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What are social benefits
The benefits created by businesses for society such as the creation of jobs or the rejuvenation of a run down area.
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What is globalisation?
The increasing trend for goods to be traded internationally and for companies to have locations abroad.
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What is off-shoring?
Making products in other countries. Services can be off-shored too such as telephone call centres in india.
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What is Vertical-Backwards Integration?
When a business merges/takes over a company in the same industry but from earlier on in the supply chain, such as of of its suppliers.
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What is Vertical-Forwards Integration?
When a business merges/takes over a company in the same industry but from later on in the supply chain, such as one of the businesses that stocks their products.
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What is Diversification?
When a business merges/takes over a company from a completely different industry to the one they are currently in.
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What is Horizontal Integration?
When a business merges/takes over a company in the same industry and at the same stage of production.
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Other cards in this set

Card 2

Front

What is inorganic growth?

Back

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

Card 3

Front

What is a Merger?

Back

Preview of the front of card 3

Card 4

Front

What is a Takeover?

Back

Preview of the front of card 4

Card 5

Front

What is a Monopoly?

Back

Preview of the front of card 5
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