| A | B |
|---|
| Internal Growth | Increased output through increased investment |
| Merger or amalgamation | Joining together of two or more firms under common ownership |
| Takeover | The agreed or contested acquisition of another company |
| Horizontal merger | A merger involving firms at the same stage of the production process in the same industries |
| Vertical merger | A merger between firms at different stages of production in the same industry |
| Forward Integration | A supplier merging with one of its buyers |
| Backward Integration | A purchaser merging with one of its suppliers |
| Conglomerate merger | Merging of firms involved in different industries |
| Asset stripping | Break up and disposal of various parts of a business |
| Economies of scale | Long run average costs fall as output rises |
| Diseconomies of scale | Long run average costs rise as output rises |
| Optimal level of production | Long run average costs at their lowest |
| Minimum efficient scale of production | Level at which the lowest cost of production starts |
| Purchasing economies of scale | Discounted bulk buying |
| Managerial economies of scale | Specialisation of role |
| Internal economies of scale | Economies earnt through growth of the firm |
| External economies of scale | Economies earnt through growth of the industry |
| Barriers to entry | Protect large firms from potential competitors |
| Valuation ratio | The comparison between a firm's stock market valuation and the value of it's assets |
| Financial economies of scale | Borrowing at lower rates of interest |
