2.1 Review

Growth that comes from within the business (internal growth) is also known as....

• Organic growth

• Inorganic growth

Inorganic growth is sometimes known as..

• Internal growth

• External growth

A merger between two companies is an example of

• Inorganic growth

• Organic growth

A benefit of inorganic growth is

• Its low risk

• Staff will be more motivated

• You reduce the amount of competition you face

A benefit of organic growth is

• Its less likely to fail

• Its quick

• You reduce the amount of competition you face

Re-investing your retained profits in creating new products is an example of

• Inorganic growth

• Organic growth

If a bigger company takes control of a smaller company by buying out their shares on the stock market, this is an example of

• Organic growth

• Merger

• Takeover

Economies of scale is when

• Growth in business size leads to lower total costs

• Growth in business size leads to lower unit costs

Businesses can only buy shares in other companies on the stock market if the business they are taking over is..

• A sole trader

• A public limited company

• A private limited company

• A partnership

Coca Cola recently launched Diet Coke twisted. This is an example of

• Organic growth

• Inorganic Growth

• Market development

• Product development