3.2.3 Organic Growth Flashcards
1
Q
What is inorganic growth?
A
Growth through using mergers or takeovers.
2
Q
What is organic growth?
A
When a business grows naturally from within.
3
Q
What is the major difference between inorganic and organic growth?
A
Inorganic growth is faster but riskier.
4
Q
What are some methods of organic growth?
A
New customers
New products
New business model
Franchising
5
Q
What are the advantages of organic growth?
A
Lower risk
Cheaper
Business retains more control
Less likely to obtain diseconomies of scale.
6
Q
What are the disadvantages of organic growth?
A
New customers
New products
Franchising
