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WorksheetsBusiness Growth Quiz
Total questions: 15
Worksheet time: 8mins
What is one advantage of business growth?
Higher costs
Less market share
Improved image
Less customer attraction
What does economies of scale refer to?
Increased competition
Lower costs with more production
Decreased market power
Higher costs with more production
Which of the following is a reason some businesses choose to remain small?
Large market size
Access to more capital
Desire for more responsibility
Strong competitors
What is a takeover?
Joining two companies
Buying control of another company
Expanding a business internally
Reducing market share
What is an example of internal growth?
Merging with another company
Acquiring a competitor
Opening a new store
Buying a new product line
What is a disadvantage of business growth?
Improved communication
Lower costs
Increased flexibility
Difficulties in controlling employees
What is one benefit of external growth?
Lower costs than internal growth
Increased market share
More natural growth
Less risk than internal growth
What can happen during a takeover?
A company merges with another
A company loses its market power
A company gains control by owning 51%+ of shares
A company reduces its size
Which of the following is NOT a reason for businesses to grow?
Attract more customers
Improve image
Increase costs
Gain economies of scale
What is a merger?
Buying another company
Joining two companies to form one
Expanding a single business
Selling a part of a business
What is a drawback of growth related to employees?
Difficult to control an increase in employees
Lower costs
More flexibility
Easier communication
What is one reason a business might not grow?
Large market size
Desire for more responsibility
Strong competitors
Access to capital
What is an example of external growth?
Improving existing products
Acquiring a competitor
Developing a new product
Opening a new location
What is a potential benefit of economies of scale?
Lower costs per unit
Less customer attraction
Increased competition
Higher production costs
What is a common challenge faced by growing businesses?
Easier management
Increased market power
Culture clash
Lower operational costs
