Which best describes a takeover?
Where two businesses join together to form a single new business
Where one business buys another business
Where a business opens new branches
Which is an example of a forward vertical takeover?
A national newspaper taking over a regional newspaper
A dairy buying a farm
A food manufacturer buying a restaurant
Which is an example of organic growth?
Taking over a supplier
Merging with a competitor
Launching a range of new products
A hotel chain buys a cinema chain. What is this an example of?
Diversification
A horizontal merger
A backward vertical takeover
Organic growth has advantages. Which of the following is not one of them?
Possible economies of scale
Risk levels are lower
Growth happens slowly
A UK supermarket opens a number of new stores in Europe. How is the business entering a new market?
Amending their marketing mix
Entering overseas markets
Taking advantage of technology
Which is an example of a horizontal takeover?
A chain of fitness gyms buys a competing chain of fitness gyms
A car manufacturer buys a chain of garages
A chain of pharmacies buys a producer of medical supplies
Which of the following is an advantage of external growth?
Takeovers and mergers are often expensive
Market share can be increased quickly
Staff may not have the experience to deal with other businesses
Which is not an example of external growth?
Horizontal takeover
Opening more branches
There are two types of which of these methods of external growth?
Vertical
Horizontal