Business Growth And Evolution Vocabulary Quiz

A multinational company is a company that operates in more than one country. This means that it has business operations, subsidiaries, or branches in multiple countries. This allows the company to expand its market reach, access new customers, and take advantage of different economies and resources in different countries. Multinational companies often have a global presence and are involved in international trade and investment. Therefore, the given answer, "True," correctly states that a multinational company operates in more than one country.

The correct answer is "two firms become one." In a merger, two separate firms come together and combine their resources, operations, and ownership to form a single entity. This allows them to pool their strengths, expand their market share, increase efficiency, and potentially achieve economies of scale. By merging, the two firms aim to create a stronger and more competitive organization in the market.

Internal growth refers to the expansion of a firm through the utilization of its own resources, such as increasing sales, developing new products, or entering new markets. This type of growth is commonly known as organic growth. Therefore, the statement that internal growth is called organic growth is true.

Takeover refers to the acquisition of one firm by another firm. It involves the purchasing of a controlling stake in the target company by the acquiring company, resulting in the acquiring company gaining control over the target company's operations and assets. This process allows the acquiring company to merge the target company into its own operations or operate it as a separate entity under its control. Therefore, the correct answer is "one firm buys another firm."

The term "inorganic" is used to describe external growth because it refers to the process of a firm expanding through acquisitions or mergers with other firms, rather than through internal means such as increasing sales or expanding existing operations. Inorganic growth involves the integration of external resources and assets into the firm's existing structure, allowing for rapid expansion and market penetration.