Internal vs External growth, public limited companies

What is internal or organic growth?

• Growth from within the business with the use of the business's own forces

• Growth with the use of third party or other established businesses

• Growth by changing the marketing mix only

• Growth by introducing new products only

What is one method of external growth?

• Changing the marketing mix

• Entertaining new markets

• Mergers and takeover/acquisitions

• Introducing new products

What is a sole-trader?

• A company with unlimited liability owned by 2 to 20 people

• A company with limited liability and shareholders

• A company owned and run by its members

• A company with limited liability and shares traded at stock exchange

What is unlimited liability in a company?

• Owner is not personally liable for the debt of the company

• Owner will lose his initial investment into the share of the company

• Owner is personally liable for the debt of the company

• Owner will not have to use personal funds to pay for the debt of the company

What is one advantage of a public limited company?

• Limited liability

• Not having to publish accounts

• Raising lots of capital by selling shares at the stock exchange

• Losing control over the company if a competitor buys shares

What is one disadvantage of a public limited company?

• Not having to publish accounts

• Limited liability

• Raising lots of capital by selling shares at the stock exchange

• Losing control over the company if a competitor buys shares

What is a stock exchange?

• A place where only public limited company shares are sold

• A place where shares are sold

• A place where shares are not sold

• A place where only private limited company shares are sold