What is one reason why businesses want to grow?

• To increase costs

• To negotiate better deals and lower costs

• To reduce profits

• To limit product range

Fill in the blank: A wider range of products increases security for a business since they are not relying on ______ product.

• one

• every

• expensive

• seasonal

Ensuring supplies and outlets gives businesses control over the ______ of products.

• availability

• color

• price

• origin

To prevent competitors gaining an advantage, gaining more control of a market will give a firm an ______ over their competitors.

• advantage

• disadvantage

• obstacle

• burden

Which of the following is a benefit of business growth?

• Decrease in sales

• Increase in market share

• Decrease in brand awareness

• Higher costs

Fill in the blank: Growth can help a business benefit from economies of ______ (bulk buying).

• scale

• scope

• location

• time

What is a merger in the context of external growth?

• When one business buys control of another business

• When two businesses agree to join together to form one new business

• When a business expands by itself

• When a business integrates with another at a later stage

What is a takeover in the context of external growth?

• When two businesses agree to join together

• When a business expands by itself

• When one business buys control (at least 51%) of another business

• When a business integrates with another at the same stage

Which type of integration occurs when a business integrates with another that operates at the same stage in the supply chain?

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration

Which type of integration occurs when a business integrates with another that operates at an earlier stage in the supply chain?

• Horizontal Integration

• Backward Vertical Integration

• Forward Vertical Integration

• Conglomerate Integration