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Trends in forms of business units or business ownership

Answer Text:
Trends in forms of business units/ business ownership
Globalisation:
-Refers to the increase of trade around the world, especially by large companies producing and trading goods in many different countries.
-Businesses organizations are able to conduct their business activities in any
part of the world by use technology i.e. e-commerce.
Almagamation/mergers:
-Refers to a process where two or more businesses join together to form one large company.
Privatization:
- Refers to transfer of business ownership from state ownership to public limited companies.
Holding Companies:
-Is a parent corporation , limited liability company or limited partnership that owns enough voting stock in another company to control its policies and management.
Subsidiary Companies:
-Refers to companies that agree to sell over 51% of their share capital to another firm.
Absorption/take overs:
-It is a situation where a company buys all the shares
of another company making the acquired one to cease to exist
Cartels:
-Are a group of related companies that produce or sell similar products. They agree to work together in order to control prices and output levels.
Franchising:
-It is a situation where one business grants another the rights to manufacture or
distribute its products using the brand name of the original company.
Multinationals:
-Companies that have headquarters in one country but run many branches throughout the world. E.g. coca cola company.