Business Growth And Evolution Vocabulary Quiz
Use your knowledge on growth and evolution to answer these vocabulary questions!
By Kanako Y.
Questions and Answers
- 1.
Internal growth, where the firm grows using their own resources, is called organic growth.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
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.Rate this question:
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- 2.
External growth, also known as growth is when a firm grows by taking over another firm or merging with another firm.
Correct Answer
inorganicExplanation
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.Rate this question:
- 3.
Merger is when
- A.
Two firms seperate
- B.
One firm buys another
- C.
Two firms become one.
Correct Answer
C. Two firms become one.Explanation
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.Rate this question:
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- 4.
Takeover is when
- A.
One firm buys another firm .
- B.
Two firms become one firm.
- C.
A firm fails
Correct Answer
A. One firm buys another firm .Explanation
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."Rate this question:
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- 5.
A multinational company is a company operating in more than one country.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
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.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 23, 2013Quiz Created by
15yamazakik
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