1. Suppose a newspaper publisher starts to publish a magazine which is to be sold separately.
(i) What type of expansion is it? Explain your answer.
(ii) State TWO motives for such an expansion.
2. Lei Sun is a garment manufacturing firm wholly owned by Mr.Lee. It will be combined with a garment retailing group to form a public limited company.Explain TWO advantages to Lei Sun of combining with a retailing group.
3. The Bank of East Asia takes over the First Pacific Bank. What type of expansion is it? Explain your answer. Explain TWO possible benefits that may be got by the Bank of East Asia.
4. A television broadcasting company takes over a film production company. Give TWO possible economic motives of the takeover.
5. A taxi company merged with a restaurant. Identify the type of integration and explain TWO possible motives for this type of integration.
6. A tutorial school publishes textbooks for sale to the public. Give FOUR possible motives of such an expansion.
7. Give TWO reasons to explain why the laser disc rental shops in Hong Kong are NOT operating under perfect competition.
8. What is the market structure of shops selling sports shoes in Hong Kong? List THREE ways of competition among firms under this market structure.
9. Personal computers of the same type are sold in many shops in Hong Kong at slightly different prices.
(i) Explain with an example why there is such a price difference.
(ii) Identify the market structure of these shops.