What you’ll learn5 learning objectivesChoose one objective for a focused lesson, or study the complete topic.7.7.1Firm size• Reasons for different sizes of firmsSyllabus objective7.7.2Internal growth• Internal growth of firms: organic growth and diversificationSyllabus objective7.7.3External growth and integration• External growth of firms - integration (mergers and takeovers):- methods of integration:- horizontal- vertical (forwards and backwards)- conglomerate- reasons for integration- consequences of integrationSyllabus objective7.7.4Cartels• Cartels:- conditions for an effective cartel- consequences of a cartelSyllabus objective7.7.5Principal-agent problem• Principal-agent problem arising from differing objectives of shareholders/owners and managersSyllabus objective