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Business Studies IGCSEPDF 39
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Higher profits
Prestige/status
Lower average costs (economies of scale)
Increased market share
Types of growth:
Internal: expanding existing operations
External: takeover or merger
Integration Types:
● Horizontal integration: same industry and stage of production
● Vertical integration: same industry, different production stage
○ Forward integration: next stage
○ Backward integration: previous stage
● Conglomerate integration: completely different industries
Sole trader is a business owned by one person. It is a form of a private
unincorporated business.
Partnership is a form of an unincorporated business in which two or more people
agree to jointly own a business. It is a form of a private unincorporated business.
Private limited companies (LTD) are businesses owned by shareholders but they
cannot sell shares to the public. It is a form of a private incorporated business.
Public limited companies (PLC) are businesses owned by shareholders but they
can sell shares to the public (tradeable in Stock Exchange). It is a form of a private
incorporated business.
Chapter 4: Types of Business
Organisation