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Business growth

One of the reason why businesses wants to grow is because
It brings high profit to the business
Owner wants to take a risk
When the firm grow more than it should be it leads to
Economies of scale
Diseconomies of scale
One of the disadvantages of merger and takeover to the employee is
Loss of jobs
Loss control
Business can grow in
1 way
2 way
Internal growth is when
Business reduce costs
When business expands its existing business
Business can internally grow by
Buying more machineries
Buy opening a new branch
Takeover means
When one business buy another business
When 2 firms agree to join togther
Integration types are
Merger and takeover
Horizontal merger, vertical merger and congolomorate
One of advanatage of vertical merger is
Reduce number of competitors
Can prevent from selling competitors products
When a business grow through conglomerate
It spread risk
Can control cost
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