External Growth 1.5

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Across
  1. 4. Organizations combine resources and responsibilities for a shared project by creating a separate legal enterprise.
  2. 6. Growth through collaboration, mergers or buying other organizations.
  3. 9. The acquiring company in an acquisition or buyer in a takeover.
  4. 13. Integration between businesses operating at different stages of production.
  5. 15. Industry growth causes average costs to rise due to factors outside an individual firm's control.
  6. 18. Large firms can employ and train specialists, increasing productivity and efficiency.
  7. 19. The company being purchased in an acquisition or takeover.
  8. 21. Combining businesses produces greater output or efficiency than the separate businesses could achieve individually.
  9. 22. Two or more firms agree to form a new organization and lose their original identities.
  10. 23. Businesses with diversified products operating across different industries.
  11. 24. A franchisor allows franchisees to sell under its corporate name in exchange for fees and royalties.
  12. 25. A company buys a controlling interest in another firm without prior approval from its board.
  13. 26. Cost savings from using large-scale processes and specialist machinery.
  14. 27. Cost or productivity advantages associated with a larger business being able to employ specialist managers.
  15. 28. Large firms can bear greater risks because they have a broader product portfolio.
  16. 29. A business combines with another firm operating at the same stage of production.
  17. 30. Growth using the business's own resources and capabilities to expand operations and sales.
  18. 31. Cost per unit of output.
  19. 32. A business combines with another business at an earlier stage of production.
Down
  1. 1. External growth between businesses with similar operations that are not direct competitors.
  2. 2. Organizations cooperate for external growth without creating a new separate legal entity.
  3. 3. Cost disadvantages arising from growth, causing average costs eventually to rise.
  4. 5. Internal management problems cause average costs to rise as the firm grows.
  5. 7. Unit-cost savings gained by purchasing very large quantities.
  6. 8. A business combines with another business at a later stage of production.
  7. 10. Lower average production costs achieved as a business operates on a larger scale.
  8. 11. External growth where one company buys a controlling stake in another with the target company’s approval.
  9. 12. The output level at which average production cost is minimized.
  10. 14. Average costs fall as the industry grows, benefiting firms throughout the industry.
  11. 16. A company sells part of its business, separating it into two or more businesses.
  12. 17. Cost advantages occurring within an individual organization as it grows.
  13. 20. Large businesses obtain cheaper finance because lenders perceive them as lower risk.