Forward vertical integration . . .

Moves the firm closer to the end user market

The primary sector in industry is . . .

Where resources are extracted from nature.

Why are horizontal mergers the most common

Firms have similar skill set requirements

External growth is often used because . . .

it is a faster method of expansion

What is organic growth

Growth without a merger or takeover

Why might the "credit crunch" have impeded business growth?

Banks less reluctant to take risks.

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005 A2 Economics 3.1.2 Business Growth

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3.1.2 Business Growth

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Questions 15

Answers

1
Forward vertical integration . . .
Guarantees a supply of raw materials.
Moves the firm closer to the end user market
Moves the firm closer to raw materials
Will spread out marginal costs equally.
2
"Working For The Yankee Dollar" was a hit single for . . .
The Who
The Beatles
The Rolling Stones
The Skids
3
The primary sector in industry is . . .
Where resources are extracted from nature.
Where services are provided to new businesses.
The service sector.
Where agricultural products are turned into consumer goods.
4
Why might some entrepreneurs not want to grow the firm?
Yet to reach MC=MR
Prefer to remain in control.
Long chains of command are more effective.
Enjoying a wider span of control
5
What does regulation mean in economic terms?
Measuring the output of firms
Measuring pollution of firms.
Laws and legislation
Putting a value on negative externalities
6
Which of the following will most likely raise market share?
Backward Vertical Integration
Horizontal merger
Horizontal Demerger
Organic downsizing
7
Which of these is the best example of a tertiary sector business
A fishing boat
A sportswear supplier
A farmer
An I.C.T. consultancy.
8
Why are horizontal mergers the most common
Finance can be easier to obtain
They pose significant risk
Firms have similar skill set requirements
Share prices are more visible
9
Which of the following would be an example of horizontal integration?
Coke taking over a sugar producer.
Coke taking over Pepsi
Coke merging with McDoofers
Coke merging with Allied Insurance plc
10
Backward vertical integration . . .
Helps raise technical diseconomies
Helps secure supplies
Helps reduce marginal productivity
Helps secure a market outlet
11
External growth is often used because . . .
it is a faster method of expansion
it is less risky than organic growth
it is more risky than organic growth
it is government funded
12
What is organic growth
Growth without using bank loans
Growth by undercutting rivals
Growth without a merger or takeover
Growth using ethical funding
13
What is an advantage of conglomerate integration?
Lack of experience in new technology
Decreased long run revenues
Dilution of investment risk
Increased technical diseconomies
14
Tottenham Hotspur FC did the league and cup double in
1961
1971
1861
1981
15
Why might the "credit crunch" have impeded business growth?
Banks have greater capitalisation.
Greater economic security.
A rising multiplier
Banks less reluctant to take risks.

005 A2 Economics 3.1.2 Business Growth Flashcards | StudBud