Business growth

5. Growth from within, such as increasing production capacity, launching new products, or expanding into new markets using reinvested profits or bank loans.
7. Minimum ______ Scale: The lowest point on the LRAC curve where all economies of scale are exploited.
9. A merger of firms in completely different industries (diversification).
10. Growth through mergers or takeovers, involving integration with other firms.
12. An agreement where two firms join to form one, new, larger entity.

1. A merger or takeover between firms in the same industry at the same stage of production (e.g., two car manufacturers).
2. Moving closer to the consumer (e.g., a brewery buying a pub).
3. Moving closer to raw materials/suppliers (e.g., a car manufacturer buying a tyre supplier).
4. _______ of Scale: Increases in unit costs when a firm becomes too large, often caused by problems with communication, coordination, and motivation.
6. _______ of Scale: Reductions in long-run average costs (LRAC) as output increases (e.g., technical, managerial, purchasing).
8. A merger between firms in the same industry but at different stages of production.
11. When one firm buys a majority stake in another, acquiring it.