Economics Edexcel A Level Paper 1 Definitions Questions and Correct Answers the Latest Update
1 view 0 purchase
Course
Edexcel A-Level History
Institution
Edexcel A-Level History
Principal-agent Problem
Principal (Shareholders) has different objectives to Agent (Manager) but the Agent is
inclined to act in order to achieve their own objectives.
Public sector organisation
When the government has control over the Business
Private sector organisation
Firms are led by...
TestTrackers: Unlock Your Exam Potential! | Quality Practice Materials | Boost Your Confidence Today!
Economics Edexcel A Level Paper 1
Definitions Questions and Correct Answers
the Latest Update
Principal-agent Problem
✓ Principal (Shareholders) has different objectives to Agent (Manager) but the Agent is
inclined to act in order to achieve their own objectives.
Public sector organisation
✓ When the government has control over the Business
Private sector organisation
✓ Firms are led by private individuals and left to the free market to dictate
Profit organisation
✓ A profit organisation aims to maximise the financial benefits of its shareholders and
organisations
Not-for-profit organisation
✓ A not-for-profit organisation has a goal which aims to maximise social welfare. They can
make profits but they can only be reinvested back into the business/used for a good cause
or operation of the organisation
, TestTrackers: Unlock Your Exam Potential! | Quality Practice Materials | Boost Your Confidence Today!
✓ Occurs when a firm merges with or takes over another firm in the same industry, but a
different stage of production.
Forward vertical integration
✓ When the firm joins together with another firm closer to the consumer e.g coffee producer
buying a café where coffee is produced
Backward Vertical Integration
✓ When the firm joins together with another firm closer to the producer - this involved
gaining control over suppliers e.g coffee producer buying a coffee farm
Horizontal integration
✓ Merger of two firms in the same industry in the same stage of production e.g two car
manufacturers merging to create one company e.g Tmobile and Orange created EE
Conglomerate Integration
✓ Two completely different firms with no connection joining together e.g Associated British
Foods owns Primark - no association
Organic Growth
✓ When firms growth happens as a result of increasing output, widening customer base -
internal growth. Investing into re-search and development
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestTrackers. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.09. You're not tied to anything after your purchase.
