Understanding Business Activity 2

What is "internal growth"?

• It occurs when a business takes over or merges with another business at the same stage of production.

• It occurs when a business expand its internal operations.

• It is the total value of capital used in a business.

• It occurs when a business takes over or merges with another business in a completely different industry.

Which of these methods are NOT used to compare the size of a business?

• Capital employed

• Value of output

• Workers employed

• Added value

One business merges with or takes over another business in the same industry but at a different stage of production.

• Horizontal integration

• Conglomerate

• Vertical integration

• Scarcity

Which of these industries does NOT belong to the tertiary sector?

• aircraft

• banking

• catering

• insurance

Another name for 'Land, Labour, Capital & Enterprise'

• The economic problem

• Specialisation

• Factors of production

• Mixed economy

Which of these are NOT included in a business plan?

• A description of the market the business is targeting.

• Financial information including income statements, sources of capital etc.

• Which firms they plan to merge with.

• Organisation structure & management.

When one business mergers with or takes over a business in a completely different industry.

• Internal growth

• Horizontal integration

• Vertical backwards integration

• Conglomerate integration

What is an 'entrepreneur'?

• A person in charge of the business strategy.

• A person who lends the funds to set up a new business venture.

• A person who organises, operates and takes the risk of a new business venture.

• A group of people in charge of creating the business plan of a new venture.

A clothing manufacturer buys a textile firm.

What type of business growth is it?

• Backwards vertical acquisition

• Forward vertical merger

• Horizontal integration

• Conglomerate

The process of transferring ownership of a business from the public sector (government) to the private sector.

• Planned/Command economy

• Nationalisation

• Privatisation

• De-industrialisation