Across
- 3. When a business (franchisor) sells the rights to produce a good or service under its brand name to another business (franchisee)
- 7. when the average unit cost of production increases as the level of output increases
- 9. This external growth method is when two or more organizations agree to commit resources to achieve an agreed set of objectives or project but does not involve creating a separate legal identity
- 12. An external growth method when shareholders and managers of two businesses agree to bring both firms together into a new merged business
- 13. Business expansion achieved by means of merging with or taking over another business from either the same or a different industry. Also known as inorganic growth
- 14. Occurs when a company buys a controlling interest in another firm without the prior agreement or approval of the target company's Board of Directors
Down
- 1. A person or business that pays a franchise fee for the rights to use the names, logo, systems of an existing successful business
- 2. A method of external growth that involves one company buying a majority stake in another company with the agreement and approval of the target company's Board of Directors
- 4. External growth that occurs when two or more businesses in unrelated industries integrate through a merger, acquisition, or takeover
- 5. An external growth method when two or more businesses agree to work closely together on a particular project and create a separate business entity for this purpose. Usually for a finite period of time
- 6. Costs of production that change in proportion to the level of output
- 8. The costs that do not change with the level of output
- 10. Expansion from within a business by expanding the range of products and/or locations and/or factories without merging, acquiring or partnering with another firm. Also known as organic growth
- 11. A business or owner of a business that sells the rights to produce a good or service under its brand name to another business