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Worksheetsbusiness growth strategies
Total questions: 16
Worksheet time: 8mins
You measure internal growth by
by counting the number of mergers
by comparing revenue year over year
by calculating debt of the organization
by looking at other company's growth
When a company expands by purchasing and controlling the direct distribution or supply of its products
Horizontal integration
Vertical backward integration
Vertical forward integration
Conglomerate integration
"having control supplies of materials to competitors" is an important advantage of ?
Horizontal integration
Vertical forward integration
Conglomerate integration
Vertical backward integration
What are some financial problems with rapid external growth?
expansion can be expensive
takeover can be expensive
additional fixed capital and working capital will be required
all 3 are correct
Where one firm takes a controlling interest of another firm:
Joint Ventures
Mergers
Acquisitions
Franchising
When a business grants a licence to use its brand and reproduce its product.
Joint Ventures
Mergers
Acquisitions
Franchising
Expanding the product line is an example of what type of growth?
Internal growth
External growth
Two or more businesses pooling their resources and creating a separate entity to achieve a goal:
Joint Ventures
Mergers
Acquisitions
Franchising
A synonym for 'acquisition'
Internal growth
Vertical integration
Merger
Takeover
When a business buys up a firm operating in the same stage of production
Horizontal integration
Vertical integration
Lateral integration
Internal growth
Growth type when a business grows using its own resources to increase scale of its operations
Vertical
External
Organic
Lateral
Joint ventures, mergers and acquisitions are all examples of what type of growth?
Internal
External
Organic
Branding
Which of the following is NOT a benefit to mergers and acquisitions?
Greater market share
Synergy
Diversification
Redundancies
In a franchise agreement, the franchisee benefits from all of these EXCEPT
Low risk with tested idea
Training and advise from HQ
Large scale advertising
Shares profits with franchisor
Joint ventures have advantages including all of these EXCEPT
Culture clash
Spreading of costs and risks
Entry to foreign markets
Competitive advantage
A strategic alliance is when companies join forces to work together but maintain their independence.
True
False
