3.1 business growth - keywords

market niche or niche market

a small segment of a much larger market

divorce of ownership from control

occurs when the managers and directors of a business are a different group of people from the owners of the business

principal agent problem

where one group, the agent, makes decisions on behalf of another group, the principal

private sector organisations

organisations that are owned by individuals or companies and not the state

public sector organisations

organisations that are owned and controlled by the state

not-for-profit organisations

organisations that do not have making a profit as a goal but use any profit or surplus they generate to support their aims

organic or internal growth

a firm increasing its size through investment in capital equipment or an increased labour force

merger, amalgamation, integration, or takeover

the joining together of two or more firms under common ownership

vertical integration or vertical merger

a joining together into one firm of two or more firms at different production stages in the same industry

forward vertical integration

a joining together into one firm of two or more firms where the supplier merges with one or more of its buyers

horizontal integration or horizontal merger

a joining together into one firm of two or more firms in the same industry at the same stage of production

conglomerate integration or merger

a joining together into one firm of two or more firms producing unrelated products

demerger

when a firm splits into two or more independent businesses