Business Growth Quiz

What is one advantage of business growth?

• Higher costs

• Less market share

• Improved image

• Less customer attraction

What does economies of scale refer to?

• Increased competition

• Lower costs with more production

• Decreased market power

• Higher costs with more production

Which of the following is a reason some businesses choose to remain small?

• Large market size

• Access to more capital

• Desire for more responsibility

• Strong competitors

What is a takeover?

• Joining two companies

• Buying control of another company

• Expanding a business internally

• Reducing market share

What is an example of internal growth?

• Merging with another company

• Acquiring a competitor

• Opening a new store

• Buying a new product line

What is a disadvantage of business growth?

• Improved communication

• Lower costs

• Increased flexibility

• Difficulties in controlling employees

What is one benefit of external growth?

• Lower costs than internal growth

• Increased market share

• More natural growth

• Less risk than internal growth

What can happen during a takeover?

• A company merges with another

• A company loses its market power

• A company gains control by owning 51%+ of shares

• A company reduces its size

Which of the following is NOT a reason for businesses to grow?

• Attract more customers

• Improve image

• Increase costs

• Gain economies of scale

What is a merger?

• Buying another company

• Joining two companies to form one

• Expanding a single business

• Selling a part of a business