Which of the following is a problem faced by a business that grows quickly and unexpectedly?
Overtrading
Undertrading
Economies of scale
Economies of scope
What is the other name given for internal growth?
Mechanic growth
Organic growth
Lateral growth
Vertical growth
Two companies X and Y are into the business of manufacturing clothes. If X joins with Y to do business, what is the activity termed as?
Takeover
Acquisition
Horizontal merger
Vertical merger
Which of the following methods is the most inaccurate method of measuring the size of a business?
Output method
Revenue
Capital employed
Profit
Assertion (A): It is necessary to provide a measure of the size of a business that is more objective and this may be important to different stakeholders.Reason (R): Governments need to know the effect of different businesses in employment and the economy.
Both A and R are true and R is the correct explanation of A.
Both A and R are true but R is not a correct explanation of A.
A is true but R is false
A is false but R is true
Which of the follwoing can casue external growth to occur?
Take over
Conglomerate
All of the above
Which one of the following is NOT a reason why business grow?
Be part of a strategy to increase sales or market share.
Be a result of growth in the market for their product
Reflect the personal aims of the owners or directors of the business
Influence of government
Which of the following is NOT a diseconomies of scale?
Size
Bureaucracy
Low employee morale
Technical economies
What is the other name given to a conglomerate merger ?
Lateral merger
Diversifying merger
A company who is dealing with software business merges with a shipbuilding company and an energy company. This is an example of which type of merger?
