BUSINESS TYPES
This type of business is owned and run by one individual.
What is a sole trader/sole proprietor?
Growth using a firm's own resources is called this.
What is internal growth?
This type of merger occurs between firms in the same industry and stage of production.
What is horizontal integration?
A succinct and motivating declaration of an organization’s core purpose (why it exists). Its present day activities, what it does now to accomplish its future goals.
Mission
These are natural resources needed to produce goods and services
Land
This type of organization is owned and controlled by the government.
What is a public sector company?
This occurs when one firm purchases another business.
What is a takeover/acquisition?
Buying a supplier is known as this type of integration.
What is backward vertical integration?
Specific targets with short timelines type of objectives
Expensive things used by a business for many years
Capital
This business structure gives shareholders limited liability.
What is a company or corporation?
This term describes when two firms combine to form one company.
What is a merger?
Opening company-owned retail stores is an example of this type of integration.
What is forward vertical integration?
These are goals and targets that the whole organization is striving to achieve. It requires a greater investment in human and financial resources
Strategic Objectives
Qualities needed to start and run a business (shares many of the qualities of an IB learner profile)
Enterprise/Entrepreneurship
In this business structure, members usually have one vote each.
What is a cooperative?
This type of business growth involves using outside resources or other companies.
What is external growth?
This type of merger occurs between firms in completely different industries.
What is conglomerate integration?
These objectives include short- and long-term objectives, including survival, profit, and growth in order to give owners a financial reward/return on their investments.
Protect shareholder value
Identifying the needs and wants of customers so that the business can provide goods and services
Marketing Strategy
This business arrangement occurs when two or more firms work together on a specific project.
What is a strategic alliance?
This is one major advantage of internal/organic growth compared to mergers.
What is lower risk/maintaining control?
Governments may block mergers because they fear this market condition.
What is monopoly power/reduced competition?
These are organizational goals based on moral guidelines in order to influence or determine business decision-making
Ethical Objectives
Producing a particular good or service that is worth more than the cost of the resources used to produce it.
Adding value / Added Value