Tag Archives | Firms

Difference between Horizontal and Vertical Integration

This article will help you to learn about the difference between horizontal and vertical integration. Difference between Horizontal and Vertical Integration Horizontal Diversification (Integration) 1. Nature: In horizontal diversification, two businesses, similar or dissimilar, join together. 2. Size of operations: Horizontal diversification enlarges the scope of operations and, thus, provides economies of scale. 3. Flexibility: Failure of one business does [...]

By |2023-02-20T00:13:52+05:30August 9, 2016|Difference Between|Comments Off on Difference between Horizontal and Vertical Integration
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External Growth Strategy: Causes, Merits and Limitations

After reading this article you will learn about:- 1. Causes of External Growth Strategy 2. Merits of External Growth Strategy 3. Limitations. Causes of External Growth Strategy: 1. Economies of scale: Small firms have limited resources (financial and non-financial) and generally produce goods at high cost. They buy in small quantities and, therefore, pay high price for materials and other [...]

By |2016-08-09T07:56:15+05:30August 9, 2016|Growth Strategies|Comments Off on External Growth Strategy: Causes, Merits and Limitations
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Calculating the Valuation of a Firm (With Formula)

Some of the commonly used methods for calculating the valuation of a firm are as follows: 1. Capitalised Earnings 2. Assets Approach 3. Market Value Approach 4. Earnings per Share. Valuation of Firms: Method # 1. Capitalised Earnings: The capitalised earnings method is based on the philosophy that the price which a buyer would like to pay for the property [...]

By |2016-06-28T09:22:02+05:30June 28, 2016|Valuation of Firms|Comments Off on Calculating the Valuation of a Firm (With Formula)
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