Explain the difference between public and privite TV licence ownership.
Public ownership shares, the public put money into a TV licence such as BBC is a public service and it the public pay for the BBC to continue running for the public to watch.
Private ownership is their own company they make money for themselfs the public do not pay for private television the company puts money into the business which they fund there selfs such as Sky, Virgin companies that are all about making money.
Explain the term conglomerate and provide examples.
Conglomerate means a corporation consisting of several companies in different businesses. Such a structure allows for diversification of business risks, but the lack of focus can make managing the diverse businesses more difficult an example of this would be Virgin Media.
Explain these key terms and provide examples.
Takeover- This occurs when one company acquires control of another company.
Example- Cadburys and AOL
Merger- This occurs when two companies combine into a single entity.
Example-Lloyds and TSB merge together as Lloyds TSB bank.
Vertical integration- When a company expands its business into areas that are at differcult points of the same production path.
Example- Virgin Media
Horizontal integration- When a company expands its business into different products that are similar to current lines.
Example- Microsoft and Apple
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