Which growth approach involves increasing the size of the business by merging with or taking over another business?

Which growth approach involves increasing the size of the business by merging with or taking over another business?

• A. Economies of scale
• B. Job production
• C. Inorganic growth
• D. Agri-Business

Answer: (C)

Inorganic growth is growth through mergers and acquisitions, increasing the size of a business by merging with or taking over another company. This approach lets a firm expand quickly by gaining new markets, customers, and capabilities that it wouldn’t achieve as fast through internal development. It can create synergies where combined operations are more valuable together, though it can bring integration and cultural challenges. Economies of scale relate to cost advantages from making more units, not a growth method. Job production is a production method for custom, one-off items, not a growth strategy. Agri-Business is simply a sector, not a way to grow the business.

Inorganic growth is growth through mergers and acquisitions, increasing the size of a business by merging with or taking over another company. This approach lets a firm expand quickly by gaining new markets, customers, and capabilities that it wouldn’t achieve as fast through internal development. It can create synergies where combined operations are more valuable together, though it can bring integration and cultural challenges.

Economies of scale relate to cost advantages from making more units, not a growth method. Job production is a production method for custom, one-off items, not a growth strategy. Agri-Business is simply a sector, not a way to grow the business.