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Chapter 3 - Coggle Diagram

- - - - Methods for external growth
        
        A merger : When the owners of two businesses agree to join their businesses together in order to make one business
        
        Horizontal intergration : When a business merges with or takes over another one in the same industry at the same stage of production
        
        Vertical integration : When one business merges with or takes over another one in the same industry but at a different stage of production. Vertical intergration can be forward or backward
        
        Conglomerate intergration : When one business merger with or takes over a business in a completely different industry
        
        Pros : Business now has activites in more than one industry which means it has diversified its activities and spread the risks taken by the business
        
        Cons : There might be a transfer of ideas between different sections of the business