Growth and Evolution Quiz by Shubhrata Shrestha | Aug 20, 2025 | 0 comments Growth and Evolution Quiz 1. Which of the following is an example of an internal economy of scale? A) Rising rental costs B) Bulk purchasing discounts C) Traffic congestion D) Increasing labour wages None 2. What is the main advantage of internal growth? A) It is faster than acquisitions B) It is less risky and maintains company culture C) It avoids diseconomies of scale D) It guarantees international expansion None 3. Which of these best describes a hostile takeover? A) Two companies agree to merge B) A business expands using its own resources C) A firm purchases another without its consent D) Two firms form a joint venture None 4. Which of the following is a benefit of franchising for a franchisee? A) Full control over brand policies B) Lower start-up costs and training support C) No royalty payments D) Unlimited creative freedom None 5. Diseconomies of scale occur when: A) Average costs fall with increased output B) Production efficiency improves C) A business grows too large and costs rise D) Firms expand into multiple markets None 6. Which of these is an example of an external economy of scale? A) Improved transportation infrastructure B) Better managerial specialisation C) Bulk buying of raw materials D) Lower interest rates on loans None 7. A joint venture differs from a strategic alliance because: A) JVs involve setting up a new legal entity B) Strategic alliances require higher investment C) JVs do not involve shared risks D) Strategic alliances require ownership changes None 8. One major disadvantage of mergers and acquisitions is: A) Slower market entry B) Limited access to new technologies C) Cultural clashes and redundancies D) Lack of economies of scale None 9. Why might some firms choose to remain small? A) To reduce personalised services B) To gain economies of scale C) To maintain flexibility and lower risks D) To ensure global competitiveness None 10. Which external growth method allows a firm to expand without buying or merging? A) Takeovers B) Strategic alliances C) Acquisitions D) Hostile mergers None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
