1. Business Growth and Expansion Reinvestment Reinvestment Using profits to improve the companyUsing profits to improve the company Chevron Chevron Dividends Dividends Growth through mergers: Growth through mergers: When firms join together to become one firmWhen firms join together to become one firm Reasons:Reasons: Faster growth, gain efficiency, eliminate rivals, change its image Faster growth, gain efficiency, eliminate rivals, change its image

2. Types of Mergers Horizontal—When similar firms merge to become one larger firm Horizontal—When similar firms merge to become one larger firm Vertical—When firms that are involved in different parts of the manufacturing process join together Vertical—When firms that are involved in different parts of the manufacturing process join together

3. Conglomerates and Multinationals Conglomerate—A firm with at least four unrelated businesses Conglomerate—A firm with at least four unrelated businesses Multinational—Has subsidiaries in various countries Multinational—Has subsidiaries in various countries Examples: Examples: GE—Appliances, NBC, Universal Studios, Global Nuclear Fuel, GE Security, GE Finance, GE Healthcare, GE Aircraft, and GE ArmsGE—Appliances, NBC, Universal Studios, Global Nuclear Fuel, GE Security, GE Finance, GE Healthcare, GE Aircraft, and GE Arms Philip Morris—Marlboro, Kraft, Miller, Oscar Mayer, Post, Maxwell House, Philadelphia, NabiscoPhilip Morris—Marlboro, Kraft, Miller, Oscar Mayer, Post, Maxwell House, Philadelphia, Nabisco