1. Globalisation refers to the process of businesses operating on an international scale, expanding their operations across borders to reach new markets, customers, and resources.
2. Franchising is a business model where a company allows individuals to own and operate outlets of their business in exchange for a fee or royalty. This allows for rapid expansion without the company having to invest heavily in new locations.
3. Privatisation is the transfer of ownership of a business, industry, or service from the public sector (government) to the private sector (individuals or companies). This is often done to increase efficiency and competition in the market.
4. Mergers occur when two separate companies combine to form a new, larger entity. This can lead to cost savings, increased market share, and improved competitiveness in the industry.
5. Cartels are groups of businesses within the same industry who join together to control market prices, production levels, and competition. This can lead to harmful effects on consumers and other businesses by limiting choices and inflating prices.
Using a summarised explanation, explain the following terms used in business ownership:
1.globalisation
2.franchising
3.privatisation
4.mergers
5.cartels
1 answer
1 answer