1.4 Types of Business Growth

Which of the following is NOT a method of internal growth?

• Increasing output

• Gaining new customers

• Developing new products

• Merging with / taking over another business

Which is an example of Internal growth?

• When two businesses agree to join together

• When a business expands overseas

• When a business acquires a controlling interest in another business

• When one business buys another business

Which of the following is an example of a horizontal merger/takeover?

• A chocolate producer buys another chocolate producer

• A chocolate producer buys a cocoa farm

• A chocolate producer buys a chain of coffee shops

• A chocolate producer buys a car producer

Which of the following best describes the term 'diversification'?

• To join with a business in the same industry as you

• To join with a business that can supply you with raw materials

• To join with a business that sells something similar to you

• To join with a business in a completely unrelated industry

When a business merge or take over business in different sector

• Horizontal

• Vertical

• Conglomerate

When Samsung is taking over another mobile phone company

• horizontal take over

• 
  vertical forward take over

• vertical backward take over

• conglomerate

When a milk company takes over chocolate company

• horizontal forward

• vertical forward

• horizontal backward

• vertical backward

When shoe retailers take over shoe manufacturing company

• horizontal forward

• horizontal backward

• vertical forward

• vertical backward

An example of Internal growth is

• Merger

• Acquisition

• Launching new products

• take over