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Economics 3.1.3

Economics- Edexcel 3.1.3

TermDefinition
demerger when a firm decides to split into separate firms
impact of demergers on businesses in the long term higher returns and operating profits
impact of demergers on businesses in the short term short term cost of selling off a part of their business especially if they sell at a low price
impact of demergers on employees expected job losses if demerger driven by desire to control unit costs and opportunities for managers of newly demerged business to assume new responsibilities
impact of demergers on consumers depends on effect of demerger on intensity of industry competition or whether it leads to fewer economies of scale being harnessed
Created by: jessharris
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