Growing The Business

Question 1

What is meant by ‘business growth’?

Answer 1

The increase in the size or scale of a business, often measured by sales, revenue, or number of employees.

Question 2

True or False: Business growth can only be achieved through increasing sales.

Answer 2

False

Question 3

Fill in the blank: One common method of growing a business is through ________ expansion.

Answer 3

market

Question 4

What is ‘organic growth’?

Answer 4

Growth achieved through the internal efforts of the business, such as increasing sales or improving efficiency.

Question 5

Multiple choice: Which of the following is NOT a way to grow a business? A) Mergers B) Acquisitions C) Reducing product range D) Franchising

Answer 5

C) Reducing product range

Question 6

What does ‘diversification’ mean in the context of business growth?

Answer 6

Entering into new markets or developing new products to reduce risk and increase revenue.

Question 7

True or False: A business can grow by reducing its costs.

Answer 7

True

Question 8

What is ‘market penetration’?

Answer 8

A growth strategy focused on increasing sales of existing products in existing markets.

Question 9

Fill in the blank: A business can grow by increasing its ________ base.

Answer 9

customer

Question 10

What is the purpose of a business plan in the context of growth?

Answer 10

To outline strategies, goals, and the resources needed to achieve growth.

Question 11

Multiple choice: Which growth strategy involves buying another company? A) Organic growth B) Acquisition C) Market penetration D) Diversification

Answer 11

B) Acquisition

Question 12

What role does ‘innovation’ play in business growth?

Answer 12

Innovation can lead to new products or services, attracting more customers and increasing sales.

Question 13

True or False: All businesses grow at the same rate.

Answer 13

False

Question 14

What is a ‘franchise’?

Answer 14

A business model that allows individuals to operate a business using the branding and business model of an established company.

Question 15

Fill in the blank: ________ is a measure of how well a company uses its resources to generate profits.

Answer 15

Profitability

Question 16

What does ‘scalability’ refer to in business growth?

Answer 16

The ability of a business to grow without being hampered by its structure or available resources.

Question 17

Multiple choice: Which of the following is a potential disadvantage of rapid business growth? A) Increased market share B) Higher operational costs C) Improved brand recognition D) Enhanced customer loyalty

Answer 17

B) Higher operational costs

Question 18

What is ‘horizontal integration’?

Answer 18

A strategy where a business acquires or merges with a competitor in the same industry.

Question 19

True or False: Growth can negatively impact customer service.

Answer 19

True

Question 20

What does ‘customer retention’ mean?

Answer 20

The ability of a business to keep its existing customers over time.

Question 21

Fill in the blank: Increasing ________ can help a business grow by attracting new customers.

Answer 21

marketing

Question 22

What is ‘vertical integration’?

Answer 22

A strategy where a business acquires or merges with companies at different stages of the production process.

Question 23

Multiple choice: Which factor is most likely to limit business growth? A) Strong management B) Market saturation C) High demand D) Innovation

Answer 23

B) Market saturation

Question 24

What is meant by ‘capacity’ in a business context?

Answer 24

The maximum amount of products or services that a business can produce or deliver.