Topic 2.1

Question 1

Adapting existing products

Answer 1

Finding new products that are based on the original one.

Question 2

Business growth

Answer 2

Factors allowing a company to expand through higher sales and (usually) higher staff levels.

Question 3

Organic (internal) growth

Answer 3

Growth from within the business, such as creating and launching successful new products.

Question 4

Inorganic (external) growth

Answer 4

Growing by buying up other businesses or by merging with a business of roughly equal size.

Question 5

Mergers

Answer 5

When two businesses of roughly equal size agree to come together to form one big business.

Question 6

Takeover

Answer 6

Obtaining control of another business by buying more than 50 per cent of its share capital.

Question 7

Product range

Answer 7

The number of different product types, sizes, colors, and brands offered by a company.

Question 8

Extension strategy

Answer 8

An attempt to prolong sales of a product for the medium-long term and prevent it from entering its decline stage.

Question 9

Dynamic nature of business

Answer 9

The idea that business is ever-changing because external factors such as technology are always changing.