Lesson 5.1.1

5.1.1 Internal Growth Quiz: NCFE Business & Enterprise, Unit 5

20 questions · by Revision Ninja

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This free Internal Growth quiz has 20 multiple choice questions for the NCFE Level 1/2 Technical Award in Business and Enterprise (NCFE Business & Enterprise), Unit 5: Growth. It covers lesson 5.1.1, Internal Growth, one of the ready-made revision sets written with Revision Ninja and organised by unit on Qwiz Rush.

Use it as a starter, a plenary or an end-of-unit check: host it live on the board and students join with a game code on their own devices — no student accounts and nothing to install — or set it for independent revision with Free Play, where each student works through the questions alone.

Every question runs on a 20-second countdown and the fastest correct answers score the most. All the questions and their choices are listed below so you can see what the quiz covers; the answers are revealed in the game. Want to change something? Make your own copy and edit it in your library.

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The 20 questions

  1. A firm expands by opening more of its own branches, paid for out of retained profit. What is this?

    • Horizontal merger
    • Internal growth
    • External growth
    • Hostile takeover

  2. A drinks firm adds a new sugar-free range. How does this support internal growth?

    • It drives a competitor out of the market
    • It cuts the cost of the firm's raw materials
    • It brings in customers the firm was missing
    • It shares the firm's risk with a partner

  3. Which action best describes a business updating its current products?

    • Launching a product it has not sold before
    • Adding new features to an existing model
    • Selling the same product in a new country
    • Buying the brand of a competing firm

  4. A UK clothing brand starts selling its existing range in Germany. Which growth method is this?

    • Developing a new product
    • Entering a new market
    • Taking over a German rival
    • Updating current products

  5. How does opening branches in new regions of the country support internal growth?

    • It cuts the firm's fixed costs straight away
    • It transfers a rival's customers to the firm
    • It raises the price customers will pay
    • It reaches customers in areas it did not serve

  6. Apple wants internal growth through developing new products. What should it do?

    • Open its first stores across South America
    • Buy a rival music streaming service
    • Design a smart ring it has not sold before
    • Add a faster chip to the current iPhone

  7. Why do businesses regularly refresh products that are already on sale?

    • To move the product into a new country
    • To spread risk by entering new sectors
    • To stop loyal customers switching brands
    • To gain control of a competitor's factory

  8. A business plans to sell in an overseas market for the first time. What is its main aim?

    • To cut the cost of the goods it buys in
    • To sell to a wider group of customers
    • To pay lower wages by hiring staff overseas
    • To take ownership of an overseas supplier

  9. A UK restaurant chain wants internal growth through geographical expansion. What should it do?

    • Add a vegan menu to existing branches
    • Buy a chain of restaurants in Spain
    • Launch its own home delivery brand
    • Open new branches in cities it is not in

  10. Porsche wants internal growth by improving cars it already sells. What should it do?

    • Buy a stake in an electric car start-up
    • Build an all-new sports utility model
    • Open its first showroom in Vietnam
    • Add a hybrid engine to a current model

  11. Which of these would count as internal growth for a coffee shop chain?

    • Fitting out and opening a fifth shop
    • Merging with a rival coffee chain
    • Taking over a chain of sandwich bars
    • Buying an independent cafe next door

  12. A family firm grows organically instead of taking over a rival. What is a benefit of this?

    • Market share rises much more quickly
    • Skills and expertise arrive with the merged firm
    • A rival is removed from the market
    • Control stays with the current owners

  13. What is the main drawback of growing from within rather than buying up other firms?

    • It takes much longer to gain scale
    • It hands control to a second business
    • It needs a large loan to be repaid
    • It forces two cultures to blend

  14. How is internal growth in a small firm most often paid for?

    • Funds put in by a new business partner
    • Profit the firm has kept from trading
    • Cash from selling shares to the public
    • A loan taken to buy a rival business

  15. A crisps maker launches a protein bar, a product it has not made before. Which growth method is this?

    • Entering an overseas market
    • Taking over a rival snack firm
    • Developing a new product
    • Updating a current product

  16. Which is a drawback of expanding a chain into new towns too quickly?

    • The firm must lower its selling prices
    • Cash runs out before the branches earn
    • Existing products have to be withdrawn
    • Ownership passes to a bigger company

  17. Before it starts selling its products in Poland, what should a UK firm do first?

    • Buy a Polish firm in the same trade
    • Restyle the products sold in the UK
    • Recruit more staff for its UK sites
    • Research what Polish shoppers want

  18. A snack brand adds a new flavour to its best-known crisps. What is the main aim?

    • To enter a market it has not served
    • To extend the life of an existing range
    • To buy market share from a rival firm
    • To reduce the cost of each packet made

  19. Why is organic growth often described as lower risk than a takeover?

    • The firm gains a ready-made customer base
    • The firm expands in steps it can afford
    • New shareholders bring extra capital
    • Two firms combine their market share

  20. A bookshop wants to reach buyers who cannot get to its high-street shop. What should it do?

    • Add a coffee bar inside the shop
    • Extend the opening hours at weekends
    • Set up its own online ordering site
    • Buy a rival bookshop in the same town