What is horizontal integration?

Merge or takeover a company in the same industry and SOP

What is a mixed economy?

An economy with a public and private sector

What is a conglomerate integration?

Merge or takeover a company in a different industry, Diversification

What is the difference between forward and backward vertical integration?

Forward is moving up in SOP whereas backward is moving down

What is the primary sector?

Extraction and/or production of raw materials

Machinery within a business, Money invested into the business by the owners

What is an unincorporated business?

One that does not have a separate legal entity

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Business Terms

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Business key terms from IGCSE text book

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Questions 16

Answers

1
What is an example for internal growth?
Expansion
Takeover
None of the above
Opening new branches
2
What is horizontal integration?
Moving up one stage of production
Merging or take over a company in a different field then you
Moving down one stage of production
Merge or takeover a company in the same industry and SOP
3
What is a mixed economy?
Bangladesh
An economy with a public and private sector
A public and private limited company
An economy with both public and private limited companies
4
What is the name given to the next best alternative given up?
Costs of goods sold
Specialization
Fringe Benefits
Opportunity Cost
5
What is Added Value
Costs - Selling Price
Selling Price - Costs
COGS - Selling Price
Selling Price - COGS
6
What is the total value of money invested into the business?
Capital Invested
Capital Employed
Profit
Output
7
What is a conglomerate integration?
Merge or takeover a company in a different industry
Internal Growth
Diversification
None of the above
8
What is an example of external growth?
Takeover
Merger
Enter a new market
Open new branches
9
What is the difference between forward and backward vertical integration?
Forward is moving up in SOP whereas backward is moving down
One is diversified, and one is specialized
Forward is moving down in SOP whereas backward is moving up
None of the above
10
What is the primary sector?
Manufacturing
Extraction and/or production of raw materials
Transportation of goods
Services
11
What is it called when a business is owned by one person?
Sole trader
Entrepreneur
Private limited owner
Solo owner
12
What is it called when there is a decline of importance within the secondary sector?
Industrialization
De-industrialization
Specialization
Mixed Economy
13
What is it when a company merges or takes over a company in a different SOP but same industry?
Vertical Integration
External Growth
Conglomerate Integration
Horizontal Integration
14
What is capital?
Total value of money used in a business
Machinery within a business
New York City is an example of this
Money invested into the business by the owners
15
What is an unincorporated business?
A company without rights to their product
A company with limited liability
One that does have a separate legal entity
One that does not have a separate legal entity
16
What is it when the production process is split into different tasks?
Division of Labour
Specialization
Delegation
De-industrialization

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