1.6 Business growth

• Business growth refers to the expansion of a business in terms of its size, sales, profits, or market share
• Collaborating with other organizations is a characteristic of external growth.


  True
• Diversification involves expanding into new products or markets to reduce reliance on a single revenue stream.

  True
• Internal growth involves mergers or acquisitions with other businesses.

  False
• Both internal and external growth can help a business expand its competitiveness
• Innovation involves developing new products or processes to stay competitive
• Financial overextension occurs when a business takes on too much debt or spends beyond its means.

  True
• Business growth refers to the expansion of a business in terms of its size, sales, profits, or market share


  True
• Internal growth is driven by the business's own efforts, while external growth involves collaborating
• What is an example of an internal factor affecting business growth?

  Management expertise
• What is a risk associated with financial overextension during business growth?

  Taking on too much debt
• What is an example of a sustainable growth strategy that minimizes environmental impact?

  Corporate Social Responsibility
• Internal growth is driven by the business's own efforts
• Sustainable growth is growth that can be maintained over the long-term without depleting resources
• Corporate Social Responsibility integrates social and environmental considerations into business operations
• Careful planning and risk management are crucial for businesses to navigate the challenges of growth
• What is an example of internal growth for a business?

  Opening new branches
• Diversification is a strategy for sustainable growth that reduces reliance on a single revenue stream


  True
• Match the internal factor with its effect on business growth:

  Management expertise ↔️ Drives strategic direction

  Access to finance ↔️ Facilitates expansion

  Innovation capabilities ↔️ Keeps competitive edge
• When measuring business growth, sales revenue indicates increasing customer demand

  True
• Effective planning and risk management are essential for businesses pursuing growth


  True
• Businesses pursuing growth can face challenges such as managing increased complexity
• Careful planning and risk management are crucial for businesses to navigate the challenges and capitalize on the opportunities presented by growth
• Match the type of business growth with its characteristic:

  Internal Growth ↔️ Driven by the business's own efforts

  External Growth ↔️ Involves collaboration with other organizations
• Order the following strategies for sustainable growth from most to least dependent on internal resources:

  1️⃣ Innovation

  2️⃣ Diversification

  3️⃣ Corporate Social Responsibility
• Businesses pursuing growth can face challenges such as managing increased complexity and maintaining company culture
• Market share measures the percentage of total market sales controlled by the business