Business Expansion Quiz

What is organic growth?

• Expansion by acquiring another business

• Growth through internal activities like increasing sales and production

• Expansion through forming a strategic alliance

• Growth through franchising

Which of the following is a key advantage of organic growth?

• Quick expansion with minimal investment

• Control over the pace of growth

• Immediate access to new markets

• Reduced financial risk

What is inorganic growth?

• Growth achieved through internal efforts

• Growth achieved by franchising

• Growth achieved by merging with or acquiring another business

• Growth achieved by launching a new product line

Which of the following is an example of inorganic growth?

• Opening a new store in an existing market

• Increasing marketing efforts

• Merging with a competitor

• Hiring new employees

Which of these is a key disadvantage of inorganic growth?

• It is slow and steady

• High financial cost and potential culture clashes

• Limited access to new markets

• Reduced control over business operations

What is franchising?

• A partnership between two companies to achieve a specific goal

• Selling the rights to operate a business under the company's brand

• Merging with a competitor to expand operations

• Acquiring a smaller business to enter a new market

A key benefit of franchising for the franchisor is:

• Complete control over the franchise operations

• Rapid expansion with lower financial risk

• Avoiding brand reputation risks

• Maintaining full ownership of all outlets

Which of the following is a disadvantage of franchising for the franchisee?

• Limited brand recognition

• High level of independence

• Ongoing fees and royalty payments

• No access to training and support

What is a strategic alliance?

• A formal partnership between companies to share resources and expertise

• A merger between two companies to reduce competition

• A contract for franchising a brand

• An acquisition of a small business

Why might businesses form a strategic alliance?

• To maintain full control over operations

• To quickly increase sales without sharing resources

• To access new markets or share expertise

• To reduce competition by eliminating a competitor