cameroon gce advanced level 2021 economics paper 3

cameroon gce advanced level 2021 economics paper 3

cameroon gce advanced level 2021 economics paper 3

This question is based on the passage below:
The existence of internal economics of scale provides a major force encouraging firms to grow in
size. However there arc different ways in which firms can grow. Broadly these can be classified as
internal growth or external growth. When firms grow by amalgamation, there is a mutual agreement
between them and in this case it is called merger. Growth can also occur when one firm acquires
control of another firm by obtaining at least 51% of its equity.
Source: Adapted from Introductory’ Economics by Barry Harrison. Page 70
Define the following as used in the passage:
• * m
Internal economies of scale.
Equity.
(iii) Merger.
List four internal economies of scale.
What economic term can be used to describe the underlined phrase?
Give two ways by which a firm can grow internally.
(c) Name two types of mergers.
(a)

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