What is internal growth?

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Multiple Choice

What is internal growth?

Explanation:
Internal growth means expanding a business using its own resources—profits reinvested, existing assets and capacity used more intensively, and new products or markets developed with in-house capabilities. This approach grows the business without involving other companies or external arrangements. It keeps control and profits within the firm, though it can be slower and relies on the firm’s own cash flow and capabilities. In contrast, growth through mergers and acquisitions, franchising, or outsourcing involves external partners or structures, which is why they’re not internal growth.

Internal growth means expanding a business using its own resources—profits reinvested, existing assets and capacity used more intensively, and new products or markets developed with in-house capabilities. This approach grows the business without involving other companies or external arrangements. It keeps control and profits within the firm, though it can be slower and relies on the firm’s own cash flow and capabilities. In contrast, growth through mergers and acquisitions, franchising, or outsourcing involves external partners or structures, which is why they’re not internal growth.

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