Exam 10: Strategies for Growth

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Synergy occurs when there are diseconomies of scale

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False

A franchisee buys a franchise from a franchisor

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By growing a business may benefit from economies of scale

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A takeover occurs when one business gains control of another. It is a form of internal growth

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An SME is a small manufacturing enterprise

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Which of the following is an example of backward vertical integration?

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Which of the following is an example of forward vertical integration?

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Which of the following is an example of horizontal integration?

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Economies of scale occur when total costs fall as the scale of production increases

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Which of the following is an example of conglomerate integration?

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Greiner's model shows the crises that can occur as a result of takeovers

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