define Flashcards
(40 cards)
private sector organizations
orgs that are owned by individuals or companies and not the state, aiming to make profit.
sole trader or sole proprietor
a business where only one person owns and controls the business.
partnerships
a business formed by two or more people, typically between two to twenty people.
limited company
businesses that have gone through legal formalities to be registered, usually with the government and thus owners have limited liability.
dividends
the share of profits that shareholders are paid
co-operatives
business owned by members and democratically controlled by member votes.
consumer co-operative
owned by consumers who buy goods or services from their co-op
producer co-operative
owned by producers of commodities who work together to process and market their products
worker co-operative
owned and democratically governed by employees who become co-op members
public sector / state owned enterprises
large organizations that are created by a countries government to carry out commercial activities
not-for-profit organizations
organizations that do not have profit making as a goal, and instead use surplus to support their aims.
joint ventures
where separate business entity is created by two or more parties.
monopolists
a firm that sells a product for sale which is available from no other company, perhaps because the product is unique or because of the distance of the next best alternative.
small and medium sized firms (SMES)
independent businesses that typically employ fewer than 250 people and have a turnover below a certain threshold (which varies by region).
organic growth
a firm increasing its size through investments in capital equipment or an increased labor force
Market penetration
a growth strategy that involves increasing sales of existing products or services to existing customers through methods like price reduction and increased advertising.
merger
the joining together of two or more firms under a common ownership. the boards of directors, along with the shareholders, agree to merge the firms together.
takeover
when one company acquires control of another company, typically by purchasing a majority stake in its shares. This can be friendly (agreed by both companies) or hostile (when the target company opposes the acquisition).
Horizontal integration
occurs when two or more companies operating in the same industry, in the same stage of production, merge or acquire each other.
Vertical integration
when a company merges with another company involved in the same industry but a different stage of the production process
Conglomerate integration
when a company acquires or merges with businesses in unrelated industries.
Forward vertical integration
when a company merges with a business that is further along in the production or distribution process, or closer to consumers. For example, a car manufacturer acquiring a car dealership
Backward vertical integration
occurs when a company acquires or merges with a business that is earlier in the production process, or closer to production. For example, a steel manufacturer acquiring an iron ore mine
Economies of scope
economic factors that make the simultaneous manufacturing of different products more cost-effective
