1.7 (quizlet version)

Question 1

unit costs formula

Answer 1

total costs / output

Question 2

economies of scale

Answer 2

unit costs falling as output increases

Question 3

diseconomies of scale

Answer 3

unit costs increasing as output increases

Question 4

e-commerce

Answer 4

sellings goods and services using electronic devices

Question 5

franchising

Answer 5

a business selling the right to another business to use its name and sell its products

Question 6

outsourcing

Answer 6

asking another business to manufacture some of your products for you

Question 7

merger

Answer 7

two businesses joining together to make one business

Question 8

takeover

Answer 8

one business buying another business

Question 9

internal growth

Answer 9

expanding by selling more of your own products

Question 10

external growth

Answer 10

joining with/buying another business

Question 11

integration

Answer 11

another word to describe a merger or a takeover

Question 12

forward vertical integration

Answer 12

joining with another business which is closer to the consumer in the supply chain

Question 13

horizontal integration

Answer 13

a business joins with another at the same stage of production (usually a competitor)

Question 14

backwards vertical integration

Answer 14

joining with another business which is further from the consumer in the supply chain

Question 15

diversification

Answer 15

joining with another business in a different sector and supply chain