Which of the following is a benefit of inorganic growth?
It is often easier to manage and control than organic growth
Market share can be increased very quickly
It can be less expensive than organic growth
Which of the following is a definition of the term ‘a takeover’?
When two or more businesses voluntarily join together
When two businesses work together to design a new product
When one business buys enough shares in another business to control it
What is hiring more staff an example of?
External growth
Internal growth
A merger
Which of the following is a disadvantage of organic growth?
Unit costs can be reduced as the business grows
Growth may be slow
It is often hard to control and manage compared to external growth
What do economies of scale result in?
Lower unit costs
Unchanged unit costs
Higher unit costs
What name is given to a business who sells the rights to use the business name and products?
Franchisee
Franchisor
Conglomorate
Which method of growth would most likely reduce the number of businesses that operated in a domestic market?
Expansion overseas
Opening new stores
Takeover of another business in the home country
Which economy of scale is achieved through bulk buying?
Purchasing
Financial
Administration
Selling goods using e-commerce is an example of which method of growth?
Merger
Changing an element of the marketing mix
Takeover
Which type of external growth involves a range of different businesses being merged or taken over?
Forward vertical
Conglomerate
Horizontal