Business Growth

What is an example of internal (organic) growth for a business?

• Merger

• Takeover

• Launching new products

• Stock market flotation

Which is an internal source of finance for businesses?

• Loan capital

• Share capital

• Retained profit

• Stock market flotation

Why might a business change its ownership structure to a public limited company?

• To reduce taxes

• To increase privacy

• To enhance growth potential

• To limit liability

Which of the following is a benefit of external growth?

• Increased innovation

• Access to new markets

• Reduced competition

• Lower costs

What is internal growth in a business context?

• Growth through innovation and attracting new customers

• Growth through acquiring another company

• Growth through selling shares in the stock market

• Growth through merging with another business

How does external growth occur for a business?

• Through innovation and new product launches

• Through joining with or taking over another business

• Through selling shares in a stock market

• Through increasing internal research and development

What is a public limited company (Plc)?

• A small private company

• A large company with shares publicly traded

• A company that only operates locally

• A company that does not issue shares

What is stock market flotation?

• A company becoming listed on a stock market

• A company acquiring another business

• A company merging with another business

• A company launching a new product

Which type of growth is generally slower, allowing a business time to adjust?

• External growth

• Internal growth

• Merger growth

• Takeover growth

What is a drawback of stock market flotation?

• Increased privacy

• Higher public scrutiny

• Reduced capital

• Decreased market reach