ECONOMICS YR 2 > BUSINESS OBJECTIVES > Flashcards

BUSINESS OBJECTIVES Flashcards

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1
Q

\WHAT R PRIVATE SECTOR FIRMS?

A

FIRMS OWNED BY INDIVIDUALS OR OTHER BUSINESSES.

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2
Q

WHAT R EXAMPLES OF PRIVATE SECTOR FIRMS?

A

TESCO PLC
VIRGIN ATLANTIC LTD
TRINITY SCHOOL
HARRY THE HANDYMAN

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3
Q

HOW DOES OWNERSHIP DIFFER BETWEEN SMALL AND LARGE BUSINESSES?

A

SMALL BUSINESSES SUCH AS SOLE TRADERS AND PARTNERSHIPS R USUALLY MANAGED BY THEIR OWNERS.

LARGE ORGANISATIONS SUCH AS PRIVATE LIMITEED COMPANISHED (LTD) AND PUBLIC LIMITED COMPANIES (PLC)WILL HAVE DIFFERENT MANAGERS AND OWNERS. IN A LIMITED COMPANY, SHAREHOLDERS WILL OWN THE COMAPNY AND WILL APPOINT DIRECTORS TO RUN THE BUSINESS ON THEIR BEHALF.

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4
Q

WHAT IS A SHARE?

A

A PORTION OF THE OWNERSHIP OF A COMPANY I.E IF A COMPANY SOLD 100 SHARES AND YOU BOUGHT 25, YOU WOULD OWN 25% OF THE COMPANY.

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5
Q

WHAT IS A LTD?

A

PRIVATE LIMITED COMPANY.

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6
Q

WHAT IS A PLC?

A

PUBLIC LIMITED COMPANY

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7
Q

WHAT IS THE DIFFERENCE BETWEEN A PRIVATE LIMITED COMPANY AND A PUBLIC LIMITED COMPANY?

A

IT IS ONLY POSSIBLE TO BUY SHARES IN A PRIVATE LIMITED COMPANY WITH THE AGREEMENTS OF OTHER OWNERS.

PUBLIC LIMITED COMPANIES CAN SELL SHARES TO ANYONE ON THE STOCK MARKET.

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8
Q

WHY DO PEOPLE BUY SHARES?

A

A SHARE MEANS U GET A PROPORTION OF THE PROFITS (DIVIDENDS)I.E IF U OWN 10% OF THE BUSINESS, YOU GET 10% OF THE PROFIT.

CAN SLSO SELL SHARES FOR HIGHER PRICES LATER.

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9
Q

WHAT R DIVIDENDS?

A

SUM OF MONEY PAID REGULARLY BY A COMPANY TO ITS SHAREHOLDERS OUT OF ITS PROFITS.

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10
Q

WHAT R THE RISKS OF BUYING SHARES?

A

IF THE COMPANY GOES BANKRUPT, YOU SHARES ARE THERE WORTHLESS ( ALTHOUGH IF THE COMPANY HAS LIMITED LIABILITY, YOU DON’T HAVE TO COVER THEIR COSTS)

IF THE SHARES DROP IN VALUE, YOU WILL MAKE A LOSS IF U NEED TO SELL THEM.

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11
Q

WHY DO FIRMS SELL SHARES?

A

SELLING SHARES ON THE STOCK EXCHANGE ALLOWS THE FIRMS TO RAISE MONEY IN A MUCH CHEAPER WAY THAN BORROWING MONEY FROM A BANK.

MAKES THE COMPANY MORE PRESTIGIOUS TO BE LISTED ON THE STOCK MARKET.

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12
Q

WHAT R THE DISADVANTAGES OF SELLING SHARES?

A

SELLING SHARES DILUTES OWNERSHIP/CONTROL AND ALSO DIVIDENDS OF EXISTING OWNERS

BEING ON THE STOCK EXCHANGE MEANS MORE INFO MUST BE MADE PUBLIC

SHAREHOLDERS MAY PUT PRESSURE ON A COMPANY TO MAKE PROFIT IMMEDIATELY AS THEY CAN TRADE THE SHARE.

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13
Q

WHAT R PUBLIC SECTOR FIRMS?

A

BUSINESSES OWNED BY THE GOVT.

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14
Q

WHAT R EXAMPLES OF PUBLIC SECTOR FIRMS?

A

UNI OF EXETER
FIRE BRIGADE
BRITISH ARMY
SUTTON HOUSING PARTNERSHIP (COUNCIL HOUSING)
WILSON’S SCHOOL
BBC

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15
Q

WHAT R THE OBJECTIVES OF A PUBLIC SECTOR FIRM?

A
  1. PROVIDE A GOOD QUALITY SERVICE
  2. PROMOTE POSITIVE EXTERNALITIES
  3. ENSURE ACCESS FOR ALL REGARDLESS OF INCOME
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16
Q

WHY IS THE MAIN OBJECTIVE OF PUBLIC SECTOR FIRMS NOT PROFIT?

A

AS THEY R OWNED BY THE GOVT, FIRMS DON’T NEED TO MAKE A PROFIT AS THEY R FUNDED BY TAX (ALTHOUGH FIRMS LIKE TFL MAY ALSO RECEIVE OTHER FUNDING E.G AD REVENUE OR TICKET SALES) - ANY PROFIT IS REINVESTED.

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17
Q

WHAT R EXAMPLES OF PRIVATE SECTOR FIRMS THAT RUN ON A “NOT FOR PROFIT” BASIS?

A

THE BIG ISSUE
OXFAM

REVENUE MADE IS REINVESTED

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18
Q

WHAT IS PROFIT?

A

PROFIT IS WHERE REVENUE EXCEEDS COSTS.

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19
Q

WHY MAY A FIRM WANT TO MAXIMISE PROFIT?

A

OWNERS WANT HIGHER PROFITS AS SOME OF THE PROFIT WILL BE DISTRIBUTED AS DIVIDENDS.

PROSEPCT OF DIVIDENDS ALSO INCREASES DEMAND FOR SHARES CAUSING THE SHARE PRICE TO RISE - POPULAR WITH SHAREHOLDERS AS THEY CAN MAKE MONEY ON TRADING THEIR SHARES?

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20
Q

WHY MAY A FIRM WANT TO MAXIMISE PROFIT? (2)

A

RETAINED PROFITS CAN BE REINVESTED BACK INTO THE BUSINESS TO FUND RESEARCH AND DEVELOPMENT - MUCH CHEAPER THAN HAVING TO PAY INTERESTS ON A LOAN.

HIGHER PROFITS CAN BE USED TO BUILD UP RESERVES IN CASE OF A RECESSION/GLOBAL HEALTH PANDEMIC.

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21
Q

WHAT IS THE PRINCIPLE AGENT PROBLEM?

A

WHERE THERE IS CONFLICT BETWEEN OBJECTIVES OF THE PRINCIPALS (OWNERS) AND THOSE OF THE AGENTS ( MANAGERS) WHO TAKE DECISIONS ON THEIR BEHALF.

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22
Q

WHAT IS AN EXAMPLE OF THE PRINCIPAL AGENT PROBLEM?

A

BANKERS GIVING OUT TOO MANY RISKY LOANS TO EXCEED TARGETS AND TRIGGER BONUSES - PLCS R OWNED BY SHAREHOLDERS WHO APPOINT DIRECTORS TO MANAGE THE BUSINESS ON THEIR BEHALF ( DIVORCE OF OWNERSHIP FROM CONTROL) - IF MANAGERS ACT IN SELF INTERESTS, THEY WILL PURSUE GOALS THAT CONFLICT WITH PROFIT MAXIMISATION. - HARD FOR OWNERS TO MONITOR THE BUSINESS (ASYMMETRIC INFO)

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23
Q

WHAT IS PROFIT SATISFICING?

A

MANAGERS LOOK TO MAKE ACCEPTABLE PROFIT LEVELS IN ORDER TO SATISFY SHAREHOLDERS TO PROTECT THEIR OWN JOBS. AFTER REACHING THIS POINT, MANAGERS MAY NOW CONCENTRATE ON THEIR OWN AIMS.

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24
Q

DOES THE PRINCIPLE AGENT PROBLEM APPLY TO SMALL FIRMS?

A

IN SMALLER FIRMS, THE OWNER IS OFTEN THE MANAGER SO THERE IS NO DIVORCE OF OWNERSHIP OF CONTROL. OBJECTIVES OF THE 2 R THEREFORE THE SAME AS THEY R THE SAME PERSON.

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25
HOW COULD THE PRINCIPAL-AGENT PROBLEM BE SOLVED?
1. PROFIT-RELATED PAY 2. EMPLOYEE SHARE-OWNERSHIP SCHEMES 3. SHAREHOLDER SCRUTINY OF SENIORS EXECUTIVES
26
WHY MAY FIRMS PRIORITISE REVENUE MAXIMISATION?
1. THEY HAVE TEMPORARY CASH FLOW ISSUES - NOT ENOUGH MONEY TO PAY FOR THEIR COSTS 2. TO TRIGGER BONUSES 3. STOCK IS ABOUT TO GO OFF/OUT OF DATE I.E IT IS A SUNK COST 4. NEED FOR IMMEDIATE FUNDS TO PAY FOR A 1 OFF INVESTMENT OR TAKEOVER 5. LARGE REVENUES R NOT AS NOTICEABLE AS LARGE PROFITS SO LESS LIKELY TO ATTRACT ATTENTION OF THE CMA
27
WHAT R THE DRAWBACKS OF THE REVENUE MAXIMISATION APPROACH?
WHILST THEY R GOOD REASONS FOR REVENUE MAXIMISATION IN THE SHORT TERM, IN THE LONG TERM, A FIRM MUST COVER ITS COSTS TO SURVIVE.
28
WHAT IS SALES MAXIMISATION?
DEFINED AS THE MAX LEVEL OF OUPUT WHICH CAN BE PRODUCED WITHOUT MAKING A LOSS.
29
WHY MAY FIRMS PRIORITISE SALES MAXIMISATION?
1. PRODUCING AT HIGH OUPUT AND HENCE LOWER PRICES WILL ATTRACT CUSTOMERS AND CAN LEAD TO BRAND LOYALTY IN THE LR 2. LOWER PRICES BUILDS MARKET SHARE AND CAN ELIMINATE COMPETITION (IMPORTANT FOR NEW FIRMS OR FIRMS IN CONTESTABLE MARKETS I.E 1S WITH LOW BARRIERS TO ENTRY) 3. HIGHER OUPUT LEADS TO ECONOMIES OF SCALE WHICH CREATE PROFITS IN THE LR LARGER FIRMS R VIEWED AS MORE PRESTIFGIOUS AND CAN ATTRACT BETTER QUALITY WORKERS
30
WHAT R THE DRAWBACKS OF THE PURSUIT OF SALES MAXIMISATION?
1. IN THE LR, FIRMS WILL NEED TO MAKE A PROFIT TO SATISFY THE OWNERS 2.THE CMA MAY INTERVENE IF THEY THINK THE FIRMS HAS TOO MUCH MARKET POWER
31
WHAT R ECONOMIES OF SCALE?
BENEFITS OF A FIRM GROWING IN SIZE LEADING TO LOWER AVERAGE COSTS IN THE LR.
32
WHAT R THE 2 TYPES OF ECONOMIES OF SCALE?
INTERNAL ECONOMIES OF SCALE EXTERNAL ECONOMIES OF SCALE
33
WHAT R INTERNAL ECONOMIES OF SCALE?
WHERE THE COMPANY GROWS BIGGER.
34
WHAT R EXAMPLES OF INTERNAL ECONOMIES OF SCALE?
CAPITAL/TECHNICAL RISK BEARING FINANCIAL MARKETING PURCHASING MANAGERIAL VOLUME BASED DIVISION OF LABOUR CLEVER RANGERS FIND MANY PATHS, MAKING VICTORY DEPENDABLE - ACRONYM TO REMEMBER
35
WHAT R EXTERNAL ECONOMIES OF SCALE?
WHERE THE INDUSTRY GROWS BIGGER.
36
WHAT R EXAMPLES OF EXTERNAL ECONOMIES OF SCALE?
LABOUR - TRAINING INFASTRUCTURE COOPERATION SUPPORT/ANCILLARY SERVICES
37
WHAT R DISECONOMIES OF SCALE?
WHEN LRAC STARTS TO INCREASE WITH RISING OUTPUT.
38
WHAT R EXAMPLES OF DISECONOMIES OF SCALE?
CONTROL COORDINATION COMMUNICATION MOTIVATION CROWDING OUT (EXTERNAL)
39
WHAT R REASONS AS TO WHY FIRMS WANT TO GROW?
1. GAIN ECONOMIES OF SCALE 2. INCREASE MARKET SHARE 3. DIVERSIFY RISK 4. GAIN EXPERTISE 5. TO MEET AIMS OF DIRECTORS
40
WHY DO SOME FIRMS WANT TO REMAIN SMALL?
1. AVOID DISECONOMIES OF SCALE OWNER OBJECTIVES 2. AVOID ATTENTION FROM LARGER BUSINESSES 3. GOVT POLICY
41
1. WHAT CAN CONSTRAIN THE GROWTH OF A FIRM?
1. SIZE OF THE MARKET 2. LIMITED RESOURCES 3. LACK OF FINANCE 4. LACK OF BARRIERS TO ENTRY TO MARKETS. 5. REGULATION/COMPETITION AUTHORITIES
42
WHAT IS INTERNAL GROWTH?
AS A FIRM INCREASES IN SIZE, IT MAY USE INTERNAL EXPANSION/ORGANIC GROWTH TO EXPAND THE SCALE OF THEIR OPERATIONS AND GAIN MARKET SHARE BY ISSUING SHARES, BORROWING FROM BANKS OR USING RETAINED PROFITS TO REIVEST IN FOP OR MOVE INTO FOREIGN MARKETS (BECOME MULTINATIONAL)
43
WHAT IS ANOTHER TERM FOR INTERNAL GROWTH?
ORGANIC GROWTH
44
WHAT R THE ADVANTAGES OF INTERNAL GROWTH?
1. LESS RISKY THAN EXTERNAL GROWTH 2. MAINTAIN COMPLETE CONTROL OF THE FIRM
45
WHAT R THE DISADVANTAGES OF INTERNAL GROWTH?
1. SLOWER THAN MERGING 2. DOESN'T PROVIDE ACCESS TO NEW EXPERTISE OR ASSETS 3. MARKET MAY BECOME SATURATED (WHERE DEMAND IS MAXIMISED AND IT CAN'T GROW ANYMORE) LEAVING EXTERNAL GROWTH AS THE ONLY MEANS OF GROWING
46
WHAT IS ANOTHER FOR EXTERNAL GROWTH?
INORGANIC GROWTH
47
WHAT IS EXTERNAL GROWTH?
OCCURS WHEN A COMPANY JOINS WITH ANOTHER COMPANY.
48
WHAT R THE 2 TYPES OF EXTERNAL GROWTH?
MERGERS TAKEOVERS
49
WHAT IS A MERGER?
AN AGREEMENT BETWEEN 2 COMPANIES TO JOIN.
50
WHAT IS A TAKEOVER?
ONE COMPANY BUYS ANOTHER COMPANY E.G FACEBOOK BUYING WHATSAPP.
51
WHAT R THE SECTORS OF PRODUCTION?
PRIMARY SECONDARY TERTIARY
52
WHAT IS THE PRIMARY SECTOR?
INVOLVES EXTRACTION AND HARVESTING OF RAW MATERIALS DIRECTLY FROM THE EARTH E.G LOGGING.
53
WHAT IS THE SECONDARY SECTOR?
TAKES THE RAW MATERIALS FROM THE PRIMARY SECTOR AND TRANSFORMS THEM INTO FINISHED GOODS OR PRODUCTS E.G A FURNITURE FACTORY.
54
WHAT IS THE TERTIARY SECTOR?
PROVIDES SERVICES TO CONSUMERS AND BUSINESSES E.G FURNITURE SHOPS.
55
WHAT R THE TYPES OF EXTERNAL GROWTH?
HORIZONTAL FORWARDS VERTICAL BACKWARDS VERTICAL CONGLOMERATE
56
WHAT IS HORIZONTAL GROWTH?
WHEN 2 BUSINESSES WHO MAKE THE SAME PRODUCTS AT THE SAME STAGE OF THE CHAIN OF PRODUCTION INTEGRATE.
57
WHAT IS FORWARDS VERTICAL GROWTH?
WHERE 1 BUSINESSES TAKES OVER ANOTHER BUSINESS WHICH IS FURTHER FORWARD IN THE CHAIN OF PRODUCTION.
58
WHAT IS BACKWARDS VERTICAL GROWTH?
WHERE 1 BUSINESSES TAKES OVER ANOTHER BUSINESS WHICH IS FURTHER BACK IN THE CHAIN OF PRODUCTION.
59
WHAT IS CONGLOMERATE GROWTH?
WHERE 2 FIRMS JOIN TOGETHER THAT R IN UNRELATED MARKETS.
60
WHAT R THE ADVANTAGES OF HORIZONTAL GROWTH FOR FIRMS?
1. ECONOMIES OF SCALE 2. ACCESS TO UNIQUE ASSETS AND EXPERTISEE 3. REDUCED COMPETITION
61
WHAT R THE DISADVANTAGES OF HORIZONTAL GROWTH FOR FIRMS?
1. DISECONOMIES OF SCALE 2. LACK OF DIVERSIFICATION 3. INVESTIGATION BY CMA
62
WHAT R THE ADVANTAGES OF HORIZONTAL GROWTH FOR OTHER ECONOMIC GROUPS?
POSSIBILITY OF LOWER PRICES (CONSUMERS) NATIONAL CHAMPIONS (GOVT)
63
WHAT R THE DISADVANTAGES OF HORIZONTAL GROWTH FOR OTHER ECONOMIC GROUPS?
UNEMPLOYMENT (WORKERS) LESS CHOICE(CONSUMERS) POSSIBILITY OF HIGHER PRICES (CONSUMERS) TOO BIG TO FALL - REQUIRE BAILOUT (GOVT)
64
WHAT R THE ADVANTAGES OF BACKWARDS VERTICAL GROWTH?
CHEAPER SUPPLIERS (FIRMS) GURANTEED SUPPLY(FIRMS) POSSIBILITY OF LOWER PRICES (CONSUMERS)
65
WHAT R THE DISADVANTAGES OF BACKWARDS VERTICAL GROWTH?
LACK OF DIVERSIFICATION (FIRMS) MAY LACK TECHNICAL KNOWLEDGE (FIRMS) CONTROL SUPPLY CHAIN (OTHER FIRMS)
66
WHAT R THE ADVANTAGES OF FORWARDS VERTICAL GROWTH?
ELIMINATE COMPETING SUPPLIERS (FIRMS) MORE CONTROL OVER MARKETING OF THE PRODUCT (FIRMS) POSSIBILITY OF LOWER PRICES (CONSUMERS)
67
WHAT R THE DISADVANTAGES OF FORWARDS VERTICAL GROWTH?
MAY LACK MARKET KNOWLEDGE (FIRMS) LACK OF DIVERSIFICATION (FIRMS) CONTROL SUPPLY CHAIN (OTHER FIRMS)
68
WHAT R THE ADVANTAGES OF CONGLOMERATE GROWTH?
DIVERSIFY RISK (FIRMS) WIDEN BRAND AWARENESS (FIRMS) CROSS-SUBSIDISE RESEARCH AND DEVELOPMENT (FIRMS)
69
WHAT R THE DISADVANTAGES OF CONGLOMERATE GROWTH?
DILUTION OF CORE BRAND (FIRMS) MAY LACK MARKET KNOWLEDGE ( FIRMS)
70
WHY IS EXTERNAL GROWTH SOMETIMES PREFERABLE TO INTERNAL GROWTH?
1. FASTER THAN INTERNAL GROWTH REDUCES COMPETITION 2. CAN ACCESS A LOYAL CUSTOMER BASE 3. TO GAIN ACCESS TO NEW ASSETS AND EXPERTISE 4. TO ACHIEVE MANAGERIAL AIMS
71
WHAT IS A DEMERGER?
OCCURS WHEN A FIRM IS SEPARATED INTO 2 OR MORE PARTS.
72
WHY DO DEMERGERES OCCUR?
OFTEN A FIRM VOLUNTARILY DECIDES TO DEMERGE BUT DEMERGERS CAN ALSO BE FORCED BY THE COMPETITION AUTHORITIES.
73
WHAT R THE ADVANTAGES OF DEMERGERS FOR BUSINESSES?
1. POTENTIAL FOR GREATER EFFICIENCY AS THEY CAN AVOID DISECONOMIES OF SCALE 2. LESS LIKELY TO BE THE TARGET OF COMPETITION AUTHORITIES 3. POTENTIAL DYNAMIC EFFICIENCY FROM AN INCREASED FOCUS ON A SMALLER AREA 4. CAN RAISE FUNDS IF PART OF THE BUSINESS IS SOLD OFF
74
WHAT R THE DISDVANTAGES OF MERGERS FOR BUSINESSES?
1.SMALLER MARKET SHARE AND LESS MARKET POWER 2. LOWER ECONOMIES OF SCALE
75
WHAT R THE ADVANTAGES OF DEMERGERES FOR WORKERS?
NEED FOR MORE SENIOR EXECUTIVES.
76
WHAT R THE DISADVANTAFES OF DEMERGERS FOR WORKERS?
1. IF THE BUSINESSES DOWNSIZES, THERE MAY BE JOB LOSSES 2. THERE MAY BE FORCED RELOCATIONS OF STAFF.
77
WHAT R THE ADVANTAGES OF MERGERS FOR CONSUMERS?
1. IF THE NEW FIRM CAN BE MORE EFFICIENT THEN THEY MIGHT BE ABLE TO CUT PRICES 2. MORE COMPETITION SHOULD ALSO LEAD TO LOWER PRICES
78
WHAT R THE DISADVANTAGES OF DEMERGERS FOR CONSUMERS?
LOCAL BRANCHES MAY CLOSE DOWN.
79
WHAT DOES THE CMA STAND FOR?
COMPETITION AND MARKETS AUTHORITY
80
WHAT IS THE CMA RESPONSIBLE FOR?
1. INVESTIGATING MARKETS WHERE THERE APPEAR TO BE COMPETITION PROBLEMS E.G HIGH PRICES 2. INVESTIGATING SUSPECTED COLLUSION 3. INVESTIGATING MERGERS WHICH COULD RESTRICT COMPETITION
81
WHEN MAY THE CMA INVESTIGATE MERGERS?
IF THE MERGER CREATES A 25% MARKET SHARE OR MORE - A FIRM HOLDS A DOMINANT POSITION IF ITS POWER ENABLES IT TO OPERATE WITHIN A MARKET WITHOUT TAKING ACCOUNT OF THE REACTION OF ITS COMPETITORS OR OF CONSUMERS.
82
WHEN MAY THE CMA ALLOW MERGERS EVEN DESPITE HIGH MARKET SHARE CREATION?
IF THEY HELP PURSUE THE NATIONAL INTEREST E.G THE MERGER OF LLOYDS TSB AND HBOS GAVE THE NEW LLOYDS BANKING GROUP A 35% MARKET SHARE BUT WAS PERMITTED DUE TO PROBLEMS CAUSED BY THE CREDIT CRUNCH.
83
WHAT POWERS DO THE CMA HAVE?
1. TO ENCOURAGE THE INDUSTRY TO SET UP A VOLUNTARY CODE OF PRACTICE 2. TO INSIST FIRMS PUBLICISE INFO 3. TO RECOMMEND ACTION FOR THE INDUSTRY REGULATOR E.G PRICE CAPPING 4. TO BLOCK A POTENTIAL MERGER 5. TO FINE COMPANIES ACTING ANTI-COMPETITIVELY ( UP TO 10% OF WORLWIDE REVENUE) 6. TO BRING CRIMINAL PROCESSINGS AGAINST THOSE INVOLVED IN CARTELS
84
HOW HAVE THE CMA BEEN CRITICISED IN THE PAST?
1. EACH INVESTIGATION IS MADE UP OF 5 MEMBERS. THE PANEL CHANGE FOR EACH INVESTIGATION. ACTIONS TAKEN BY THE PANEL CAN BE QUITE SUBJECTIVE LEADING TO INCONSISTENSIES IN APPROACH. 2. ONLY A SMALL % OF MERGERS AND ANTI-COMPETITIVE PRACTICES R ACTUALLY INVESTIGATED 3. THE CMA HAS BEEN CRITICISED FOR BEING TOO LENIENT POSSIBLY AS A RESULT OF REGULATORY CAPTURE.
85
HOW WERE ANTI-COMPETITION PRACTICES INVESTIGATED PRIOR TO 2014?
INVESTIGATION OF ANTI-COMPETITIVE PRACTICES WERE CARRIED OUT BY THE OFFICE OF FAIR TRADE WHILST DECISIONS ABOUT WHETHER TO PERMIT MERGERS WERE CARRIED OUT BY THE COMPETITION COMMISSION. IN 2014, THESE BODIES WERE MERGED TO THE CMA.
86
WHAT R EXAMPLES OF HORIZONTAL INTEGRATION?
1. FACEBOOK AND INSTAGRAM (2012) 2. VODAFONE AND T-MOBILE (2018) 3. PARAMOUNT GLOBAL AND SKYDANCE MEDIA (2025)
87
WHAT R EXAMPLES OF FORWARD VERTICAL INTEGRATION?
1. APPLE AND BEATS ELECTRONICS (2014) 2. AMAZON AND WHOLE FOODS (2017) 3. DOORDASH AND DELIVEROO (2025)
88
WHAT R EXAMPLES OF BACKWARD VERTICAL INTEGRATION?
1. DISNEY AND PIXAR (2006) 2. NIKE AND CONVERSE (2003) 3. DNOW AND MRC GLOBAL (2025)
89
WHAT R EXAMPLES OF CONGLOMERATE INTEGRATION?
1. AMAZON AND PILLPACK (2018) 2. GE AND NBC UNIVERSAL (2011)
90
WHAT R EXAMPLES OF DEMERGERS?
1. EBAY AND PAYPAL (2015) 2. ABBOT LABORATORIES BECAME ABBOT AND ABBVIE (2013)
ECONOMICS YR 2
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