Paper 1 · business growth
Which of the following is an example of external (inorganic) business growth?
AOpening new branches in additional locations.
BIncreasing output at existing sites.
CA merger with another firm.
DPenetrating new markets with existing products.
Explanation: External growth happens when a firm combines with another business, through a merger, takeover or acquisition. Opening new branches, raising output and entering new markets are all forms of organic (internal) growth, achieved by expanding the firm's own existing operations rather than joining with another firm.
Derived from ZIMSEC Business_studies Paper 1, November 2019, Q2
