Business Growth Quiz

Which of the following is an example of internal (organic) growth?

• Merging with a competitor

• Expanding into overseas markets

• Taking over another business

• Purchasing new equipment through a loan

External (inorganic) growth is best exemplified by:

• Introducing a new product

• Research and development activities

• Merging with another business

• Expanding the marketing mix

Research and development primarily contributes to business growth by:

• Merging with other companies

• Creating innovative new products

• Expanding to international markets

• Acquiring smaller firms

A public limited company (plc) is different from other business types because it:

• Can only raise finance through loans

• Is able to sell shares to the public on the stock market

• Is owned entirely by private individuals

• Is limited to operating within one country

Which of the following is a characteristic of a public limited company (plc)?

• Unlimited liability

• Owned by shareholders

• Not subject to public scrutiny

• Cannot raise finance through share capital

An internal source of finance commonly used by established businesses is:

• Selling assets

• Loan capital

• Stock market flotation

• Share capital

Which of the following is an external source of finance?

• Retained profit

• Selling assets

• Loan capital

• Reinvested earnings

Stock market flotation allows a business to:

• Sell shares publicly and raise capital

• Borrow money at a lower interest rate

• Issue bonds to the public

• Secure government grants

A business might change its aims and objectives due to:

• Steady technological advancements

• Consistent market conditions

• Increasing competition in the market

• Stable government legislation

A common reason for changing business objectives is:

• Acquiring a new loan

• Internal restructuring of the workforce

• Declining performance

• Stable revenue growth