Key Terms Flashcards
Organic growth (internal)
Growth from within the business, such as creating and launching successful new products
Inorganic growth (external)
Growing by buying up other businesses or by merging with a business of roughly equal size
Mergers
When two businesses of roughly equal size agree to come together to form one big business
Takeover
Obtaining control of another business by buying more than 50 per cent of its share capital
Economies of scale
a proportionate saving in costs gained by an increased level of production
Flotation
Listing company’s shares on the stock market, therefore allowing the price to float freely (up and down)
Public limited company (plc)
A company with at least £50,000 of share capital that can advertise its shares to outsiders and is therefore allowed to float its own shares on the stock market
New products
Goods and services that differ significantly in their characteristics or intended uses from products previously produced by the firm
New market
A market where the end product or service is new
E-commerce
Selling online rather than in a physical one-to-one transaction.
Exchange rate
The value of one currency measured by how much it will buy of other currencies
Tariffs
Taxes charged only on imports
Quota
A fixed share of something that a person or group is entitled to receive or is bound to contribute
Multinational
A company operating in several or more countries
Trade bloc
A group of counties that has agreed to have free trade within external tariff walls
