Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
|
Def of horizontal integration |
this is the merger of two firms at the same stage of production producing the same product |
|
|
Def of vertical integration |
Occurs when a firm merges with another firm involved eight the production of the same product but at a different stage of production |
|
|
What’s vertical integration backwards |
This happens when a firm merged with a firm that is the source of supply |
|
|
what is vertical integration forward |
This happens when a firm merges with, or take over, a market outlet |
|
|
What is conglomerate integration |
This happens when the merger of two firms making different products |
|
|
Adv of small firms |
1) the small size of the market. Demand for example luxury rims, may be small as it may be individually designed 2) preference of consumers. For some personal services, such as hairdressing, consumers prefer small firms 3) owners preference. The owner of a firm may not want to grow 4) flexibility. Small firms may be able to respond more quickly and adjust to changes in the market conditions 5) government subsidies. Governments provide financial help and advice to small firms |
|
|
Disadvantages of small businesses |
1) lack of financial capital. Some firms may want to expand but don’t have finance to do so. 2)they don’t benefit of economies of scale 3) barriers to entry such as brand loyalty and awareness as larger firms advertise more 4) Difficulty attracting highly qualified and experienced staff Owners may not have enough money to afford the wages or the high-quality training and education workers require.
|
