Occurs when one business takes control of another business by purchasing a controlling interest in it.
What is an acquisition (takeover)
100
Refers to the stages of growth and development a business can experience
What is a business life cycle?
200
Occurs when an independant administrator is appointed to operate the business in the hope of trading out the present financial problems.
What is voluntary administration?
200
Is the process of converting the assets of a business into cash.
What is realisation? (not liquidation)
200
Occurs when there is a lack of sufficient funds to operate a business normally.
What is undercapitalism?
200
Occurs when the owners of two separate businesses agree to combine their resources and form a new organisation.
What is a merger?
200
Those people or business who own money
What is creditors?
300
Is where a business has a receiver take charge of the affairs of the business. Unlike liquidation, the business may not necessarily be wound up.
What is receivership?
300
Is simply the money coming into the business in the form of cash receipts, constantly. (flow)
What is cash flow?
300
Occurs when an independant and suitably qualified person -the liquidfier- is appointed to take control of the business with the intention to sell the business's assets to convert into cash to pay back creditors (bank, ect.)
What is liquidation?
300
Occurs when the owner is forced to cease trading by the creditors of the business.
What is involuntary cessation?
400
Occurs when the owner ceases to operate the business on their own accord.
What is voluntary cessation?
400
Occurs when a business acquires or merges with another firm that makes and sells similar products.
What is horizontal integration?
400
Occurs when a business acquires or merges with a business in a completely unrelated industry.
What is diversification (or conglomerate integration)?
400
Occurs when a business expands at different but related levels in the production and marketing of a product.
What is vertical integration?
500
Occurs when a company is not able to pay its debts as and when they fall due.
What is being insolvent?
500
A declaration that a business or person is unable to pay for his or her debts.