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business growth strategies

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

You measure internal growth by

a)

by counting the number of mergers

b)

by comparing revenue year over year

c)

by calculating debt of the organization

d)

by looking at other company's growth

2.

When a company expands by purchasing and controlling the direct distribution or supply of its products

a)

Horizontal integration

b)

Vertical backward integration

c)

Vertical forward integration

d)

Conglomerate integration

3.

"having control supplies of materials to competitors" is an important advantage of ?

a)

Horizontal integration

b)

Vertical forward integration

c)

Conglomerate integration

d)

Vertical backward integration

4.

What are some financial problems with rapid external growth?

a)

expansion can be expensive

b)

takeover can be expensive

c)

additional fixed capital and working capital will be required

d)

all 3 are correct

5.

Where one firm takes a controlling interest of another firm:

a)

Joint Ventures

b)

Mergers

c)

Acquisitions

d)

Franchising

6.

When a business grants a licence to use its brand and reproduce its product.

a)

Joint Ventures

b)

Mergers

c)

Acquisitions

d)

Franchising

7.

Expanding the product line is an example of what type of growth?

a)

Internal growth

b)

External growth

8.

Two or more businesses pooling their resources and creating a separate entity to achieve a goal:

a)

Joint Ventures

b)

Mergers

c)

Acquisitions

d)

Franchising

9.

A synonym for 'acquisition'

a)

Internal growth

b)

Vertical integration

c)

Merger

d)

Takeover

10.

When a business buys up a firm operating in the same stage of production

a)

Horizontal integration

b)

Vertical integration

c)

Lateral integration

d)

Internal growth

11.

Growth type when a business grows using its own resources to increase scale of its operations

a)

Vertical

b)

External

c)

Organic

d)

Lateral

12.

Joint ventures, mergers and acquisitions are all examples of what type of growth?

a)

Internal

b)

External

c)

Organic

d)

Branding

13.

Which of the following is NOT a benefit to mergers and acquisitions?

a)

Greater market share

b)

Synergy

c)

Diversification

d)

Redundancies

14.

In a franchise agreement, the franchisee benefits from all of these EXCEPT

a)

Low risk with tested idea

b)

Training and advise from HQ

c)

Large scale advertising

d)

Shares profits with franchisor

15.

Joint ventures have advantages including all of these EXCEPT

a)

Culture clash

b)

Spreading of costs and risks

c)

Entry to foreign markets

d)

Competitive advantage

16.

A strategic alliance is when companies join forces to work together but maintain their independence.

a)

True

b)

False