Cambridge International AS and A Level Business

Worksheet – Chapter 7
Size of business (A Level)
Dale Farms Co (DFC) owns 12 dairy farms. It used to sell all of the milk it produced to cheese manufacturers.
Five years ago it took over a cheese manufacturing company. Two years ago it took over a cattle feed supplying
business. The directors of DFC are considering another takeover to diversify the business.
1 Explain the term ‘external growth’. [2]

2 Explain two possible advantages and two possible disadvantages to DFC of its takeover of the cheese
manufacturing business. [8]

3 Identify what form of integration this takeover is. [2]

4 Explain two possible advantages and two possible disadvantages to DFC of its takeover of the cattle feed
supplying business. [8]

5 Identify what form of integration this takeover is. [2]

© Cambridge University Press 2014 Cambridge International AS and A Level Business Worksheet – Chapter 7 1
Cambridge International AS and A Level Business

6 Identify two businesses that DFC could merge with to form a conglomerate business. [2]

7 Assess two possible reasons why such a merger might not be successful. [6]

© Cambridge University Press 2014 Cambridge International AS and A Level Business Worksheet – Chapter 7 2