Things to Remember 1
Business expansion achieved by means of merging with or taking over another business, from either the same or a different industry
What is External growth?
A person or institution owning shares in a limited company.
What is a Shareholder?
Business organization that has its headquarters in one country, but with operating branches, factories and assembly plants in other countries.
What is Multinational business?
The art of motivating a group of people towards achieving a common objective.
What is Leadership?
Benefits given, separate from pay, by an employer to some or all employees.
What is Fringe benefits?
The physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.
What is Capital goods
A business that uses the name, logo and trading systems of an existing successful business.
What is a Franchise
A document detailing a company’s rules and guidelines on staff behavior that must be followed by all employees.
What is Ethical code (Code of conduct)?
The ability of managers to understand their own emotions, and those of the people they work with, to achieve better business performance.
What is Emotional intelligence (EI):?
The internal and external factors that stimulate people to take actions that lead to achieving a goal.
What is Motivation?
When a company buys more than 50% of the shares of another company and becomes the controlling owner of it – often referred to as ‘acquisition’.
What is Takeover?
A business formed by two or more people to carry on a business together, with shared capital investment and, usually, shared responsibilities.
What is a partnership?
The increasing freedom of movement of goods, capital and people around the world.
What is Globalizations?
Integration with firms in the same industry and at same stage of production
What is Horizontal integration?
A bonus scheme to reward staff for above-average work performance.
What is Performance-related pay?
Selling state-owned and controlled business organizations to investors in the private sector.
What is Privatization?
A business in which one person provides the permanent finance and, in return, has full control of the business and is able to keep all of the profits.
What is Sole trader?
Integration with a business in a different industry
What is Conglomerate?
A person who has no formal authority but has the respect of colleagues and some power over them.
What is Informal leader?
Aspects of a worker’s job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work and advancement at work.
What is Motivating factors (motivators)?
The only liability – or potential loss – a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder.
What is Limited liability?
The whole is greater than the sum of parts, so in integration it is often assumed that the new, larger business will be more successful than the two, formerly separate, businesses were.
What is Synergy?
Economic resources are owned and controlled by both private and public sectors.
What is Mixed economy?
■ customers ■ suppliers ■ employees and their families ■ local communities ■ government and government agencies ■ special interest groups are examples of what.
What are examples of stakeholders?
A payment to a worker for each unit produced.
What is Piece rate?