External (Inorganic) Growth Quiz

Eesha and Isla are studying business strategies. They want to know what external (inorganic) growth in business means. Can you help them?

• Growth by improving employee skills

• Growth by reducing costs

• Growth through mergers or takeovers

• Growth through increasing sales internally

What is a merger?

• When Daniel buys more than half the shares of another business

• When two businesses join to form a new, larger business

• When a business sells its assets to another

• When a business closes down

Henry is studying business and wants to know: What is a takeover?

• When a business sells its assets to another

• When a business buys more than half the shares of another

• When two businesses join to form a new, larger business

• When a business closes down

Amelia and Scarlett are owners of two competing coffee shop chains. Which of the following is an example of horizontal integration?

• A business taking over a supplier

• Two competitors merging

• A business diversifying into a new market

• A business acquiring a retailer

Emily's company, which manufactures smartphones, decides to acquire a retail chain that sells electronic gadgets. What is this an example of?

• When a business diversifies into unrelated markets

• When a business takes control of a company at a later stage in the supply chain

• When a business merges with a competitor

• When a business takes control of a supplier

Thomas is studying business strategies and learns about backward vertical integration. What does this term mean?

• When a business diversifies into unrelated markets

• When a business takes control of a company at a later stage in the supply chain

• When a business merges with a competitor

• When a business takes control of a supplier

Ella and Aarav are discussing business strategies. What is conglomerate integration?

• When a business merges with a competitor

• When a business takes control of a supplier

• When businesses in unrelated markets join

• When a business takes control of a company at a later stage in the supply chain

Ella is studying different business strategies. She wants to know which of the following is NOT a method of external growth?

• Backward vertical integration

• Internal expansion

• Conglomerate integration

• Horizontal integration

Aarav and Ishaan are business partners considering a strategy to expand their company. What is a key advantage of horizontal integration?

• Diversification of products

• Increased market share and competitiveness

• Access to new markets

• Increased control over supply chain

Charlie is studying business strategies and wants to know what a company achieves through conglomerate integration. What should he learn?

• Increased market share in the same industry

• Control over retailers

• Control over suppliers

• Spread of risk over a wider range of products and services