Growth

Why might a business want to grow?

• More Profit

• Give employees more time off

• To improve the business image

• To sell less products

Why might a business want to grow?

• To gain more competition

• To gain more customers

• To reduce the amount of stores

Which method of growth carries more risk?

• Internal/Organic

• External/Inorganic

Internal/Organic growth is easier to manage and control than External/Inorganic.

• True

• False

Which of the following is NOT Internal/organic growth?

• Opening a new location

• Expanding through internet selling

• Merging with a similar company

• Offering franchises

A merger is...

• A method of Internal growth

• A friendly deal where two businesses join together

• A forced and sometimes hostile deal where one firm buys a share of the other business

A take-over is...

• A method of Internal growth

• A friendly deal where two businesses join together

• A forced and sometimes hostile deal where one firm buys a share of the other business

What is "internal growth"?

• It occurs when a business takes over or merges with another business at the same stage of production.

• It occurs when a business expand its internal operations.

• It is the total value of capital used in a business.

• It occurs when a business takes over or merges with another business in a completely different industry.

Two or more firms agree to form as a new organization, losing original identities

• Merger
• Joint venture
• Acquisition
• Franchise

One company buys a controlling interest in another firm

• Horizontal integration
• Acquisition
• Merger
• Internal growth