Which term denotes growth achieved from within the company through increased sales and reinvestment?

Which term denotes growth achieved from within the company through increased sales and reinvestment?

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

Answer: (B)

Organic growth is growth achieved from within the company through increased sales and reinvestment. It happens when a business expands using its own resources—improving products, entering new markets, boosting marketing, or expanding production—and funds that expansion with retained earnings rather than by acquiring other companies. This distinguishes it from inorganic growth, which comes from mergers or acquisitions. Economies of scale describe cost advantages from producing more, not the way growth is achieved. Agri-Business is just a sector name, not a method of growing the business.

Organic growth is growth achieved from within the company through increased sales and reinvestment. It happens when a business expands using its own resources—improving products, entering new markets, boosting marketing, or expanding production—and funds that expansion with retained earnings rather than by acquiring other companies. This distinguishes it from inorganic growth, which comes from mergers or acquisitions. Economies of scale describe cost advantages from producing more, not the way growth is achieved. Agri-Business is just a sector name, not a method of growing the business.