Internal growth is also known as
  • Merger
  • Sales maximisation
  • Organic growth
  • Inorganic growth
External growth is also known as
  • Organic growth
  • Inorganic growth
  • Merger
  • Sales maximisation
An example of Organic growth is
  • Merger
  • Launching new products
  • Acquisition
  • Takeover
A merger is
  • Two business agreeing to becoming one new business
  • One business buying shares in another business
  • One business taking over control of another business
  • Two businesses co operating with each other.
Which option best describes the term takeover?
  • When two firms agree to join together to make one new business
  • When a business finds a new market in another country
  • When one business purchases another business
  • When a business brings something new to the market
Which best describes growth by expanding overseas? When a business:
  • Finds new customers to buy its products in its domestic market
  • Purchases another business in its home country
  • Finds a new market in another country
  • Invests heavily in research and development
Nike buying a materials producer would be a form of...
  • Vertical Forward Integration
  • Horizontal Integration
  • Vertical Backward Integration
  • Diversification
Two toy companies decide to merge because they believe they will be able to develop more ideas for new toys and produce and sell them faster, at lower costs.
  • Horizontal
  • Vertical
  • Conglomerate
What is a franchise?
  • Where a business sells the rights to their brand
  • Where you have full control
  • Where you keep all the profits
Which is a franchisor?
  • Allows others to use their brand and business for a fee
  • Takes over a business
  • Buys into an existing brand
Fee paid from franchisee to franchisor based on percentage of sales
  • royalty fee
  • license fee
  • advertising fee
Which is a franchisee?
  • Provides financing to a business
  • Takes over a business
  • Buys into an existing brand and proven business
A franchisor offers lots of training to the new franchisee
  • True
  • False
A franchisor uses the money received from franchisee to pay for advertising and marketing materials
  • True
  • False
Benefits of owning a franchise business
  • Proven business model
  • Easier to get financing
  • Protected territory
  • All of the Above
A franchisor expands the brand by using other people's money
  • True
  • False
A franchisee can operate a business anywhere they want and are not restricted by territory
  • True
  • False
A Franchise business model is used only in the food industry
  • TRUE
  • FALSE
Financing may be easier to obtain when buying a Franchise
  • TRUE
  • FALSE
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