Unit 2.1.1 Growing the Business

Which of the following is an example of internal growth for a business?

• Acquiring a competitor company

• Selling shares to the public

• Developing a new product through research and development

• Obtaining a loan from a financial institution

What does the abbreviation ‘plc’ mean?

• Public Limited Company

• Private Limited Corporation

• Private Liable Company

• Public Limited Corporation

Which of the following is an example of an external source of finance for a growing business?

• Selling assets

• Retained profit

• Loan capital

• Research and development investment

Which of the following sources of finance involves selling shares to the public?

• Loan capital

• Retained profit

• Share capital

• Selling assets

What is an example of an internal source of finance for an established business?

• Expanding overseas

• Taking out a loan

• Retained profit

• Acquiring a competitor company

Which method of business growth involves the combination of two companies into one entity?

• Merger

• New product development

• Research and development

• Stock market flotation

What is the primary purpose of stock market flotation for a company?

• To expand into new markets

• To develop innovative products

• To obtain loan capital

• To raise share capital from the public

Which of these is NOT an external source of finance?

• Selling assets

• Share capital

• Loan capital

• Stock market flotation

External growth can also be known as what?

• Organic growth

• Inorganic growth

• Fresh growth

• Extended growth

What type of growth is it when a business expands overseas?

• Internal

• External