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Worksheets

2.1 Review

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Growth that comes from within the business (internal growth) is also known as....

a)

Organic growth

b)

Inorganic growth

2.

Inorganic growth is sometimes known as..

a)

Internal growth

b)

External growth

3.

A merger between two companies is an example of

a)

Inorganic growth

b)

Organic growth

4.

A benefit of inorganic growth is

a)

Its low risk

b)

Staff will be more motivated

c)

You reduce the amount of competition you face

5.

A benefit of organic growth is

a)

Its less likely to fail

b)

Its quick

c)

You reduce the amount of competition you face

6.

Re-investing your retained profits in creating new products is an example of

a)

Inorganic growth

b)

Organic growth

7.

If a bigger company takes control of a smaller company by buying out their shares on the stock market, this is an example of

a)

Organic growth

b)

Merger

c)

Takeover

8.

Economies of scale is when

a)

Growth in business size leads to lower total costs

b)

Growth in business size leads to lower unit costs

9.

Businesses can only buy shares in other companies on the stock market if the business they are taking over is..

a)

A sole trader

b)

A public limited company

c)

A private limited company

d)

A partnership

10.

Coca Cola recently launched Diet Coke twisted. This is an example of

a)

Organic growth

b)

Inorganic Growth

c)

Market development

d)

Product development

11.

Growing a business helps to

a)

Increase market share

b)

Increase motivation of workers

c)

Increase customer satisfaction

12.

If Sainsburys bought Asda, this would be an example of

a)

Horizontal integration

b)

Vertical integration

c)

Organic growth