Deck 10: Strategies for Growth

Question 1

An SME is a small manufacturing enterprise

Answer 1

False

Question 2

By growing a business may benefit from economies of scale

Answer 2

True

Question 3

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

Answer 3

False

Question 4

Synergy occurs when there are diseconomies of scale

Question 5

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

Question 6

Which of the following is an example of horizontal integration?

A) Car manufacturer buys car manufacturer
B) Car manufacturer buys a tyre manufacturer
C) Car manufacturer buys a car retail sales outlet
D) Car manufacturer buys ice cream retail outlets

Question 7

Which of the following is an example of conglomerate integration?

A) Car manufacturer buys car manufacturer
B) Car manufacturer buys a tyre manufacturer
C) Car manufacturer buys a car retail sales outlet
D) Car manufacturer buys ice cream retail outlets

Question 8

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

A) Car manufacturer buys car manufacturer
B) Car manufacturer buys a tyre manufacturer
C) Car manufacturer buys a car retail sales outlet
D) Car manufacturer buys ice cream retail outlets

Question 9

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

A) Car manufacturer buys car manufacturer
B) Car manufacturer buys a tyre manufacturer
C) Car manufacturer buys a car retail sales outlet
D) Car manufacturer buys ice cream retail outlets

Question 10

A franchisee buys a franchise from a franchisor

Question 11

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