Lesson 5.1.2
5.1.2 External Growth Quiz: NCFE Business & Enterprise, Unit 5
20 questions · by Revision Ninja
In partnership with Revision Ninja
This free External 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 5.1.2, External 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.
All NCFE Business & Enterprise quizzes
The 20 questions
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Which of these is an example of a business growing externally rather than internally?
- Opening its own new branches in overseas markets
- Training staff to raise output
- Merging with a rival manufacturer
- Launching a new product in-house
-
Two food manufacturers merge into a single company. Which benefit does the merger most directly bring?
- Full ownership kept by the founders
- Royalty income paid by franchisees
- Shared risk on a single new project
- Lower costs from economies of scale
-
A UK retailer merges with a French rival of a similar size. Which challenge are the managers most likely to face?
- Weaker buying power with suppliers
- Slower growth than organic expansion
- Clashing cultures and working styles
- Paying a licence fee to the other firm
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Kraft and Heinz merged in 2015 to create one of the world's biggest food groups. Why was the deal attractive to both?
- Costs fell and market power grew
- Risk on one new product was shared
- Both firms stayed fully independent
- Franchise fees flowed in from outlets
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Which statement best describes what happens in a takeover?
- Two firms create a jointly owned new company
- Two similar firms agree to join as equals
- One firm buys control of another firm
- A firm sells the right to its brand
-
A UK bakery chain takes over a smaller competitor. What advantage is the buyer most likely to gain?
- A steady fee from each new franchisee
- A share of a joint project's profits
- Instant access to the rival's customers
- Slower but safer growth from within
-
Sainsbury's bought Argos in 2016 and placed Argos counters inside its supermarkets. What was a main benefit?
- Cheaper own-brand food from bigger bulk orders
- A much wider product range in one store
- Risk shared with a partner on a new venture
- Franchise fees paid by Argos owners
-
Which statement best describes a joint venture?
- Two firms share a specific new project
- Two firms combine into a single firm
- One firm buys control of another firm
- A firm sells brand rights to owners
-
Two firms set up a joint venture to launch a product in a new overseas market. What is the main benefit for each?
- Each firm keeps all the profits it makes
- One firm gains control by buying the other
- A local partner pays a licence fee to trade
- Costs and risks are split between them
-
Starbucks and PepsiCo formed a joint venture to sell bottled Frappuccino. What did PepsiCo mainly bring to it?
- A vast bottling and distribution network
- Cash to take full control of Starbucks
- Skill in roasting speciality coffee beans
- A well-known coffee shop brand name
-
A café firm wants to get bigger. Which of these would be external growth?
- Opening ten more of its own branches
- Buying a rival chain of coffee shops
- Training baristas to serve faster
- Launching a new range of iced drinks
-
A large supermarket buys a majority stake in a smaller chain and now runs it. This is a:
- Merger
- Joint venture
- Franchise
- Takeover
-
A UK drinks firm sets up a joint venture with a Japanese partner. What is the main gain for the UK firm?
- The two firms become one legal company
- The partner pays a fee to use the brand
- The partner already knows the local market
- The partner's shares are bought outright
-
What is the key difference between a merger and a takeover?
- A merger is between rivals; a takeover is not
- A merger is agreed; a takeover can be hostile
- A merger uses cash; a takeover uses shares
- A merger is temporary; a takeover is permanent
-
Which of these is a drawback of growing by taking over another firm?
- Every decision must be agreed with a partner
- Quality control passes to the franchisee
- Growth is slow as new outlets must be built
- Staff clash over different ways of working
-
Two food firms form a joint venture to sell a new bottled coffee. What happens to the two firms?
- They combine to form one new company
- They stay separate but share the project
- One firm licenses its brand for a fee
- One firm buys a controlling stake in the other
-
Why do firms often prefer external growth to growing organically?
- It keeps ownership in the founder's hands
- It costs far less than opening new outlets
- It is easier to keep the culture the same
- It builds market share far more quickly
-
Two large brewers merge. Which benefit is the new firm most likely to gain?
- Regular fee income from franchisees
- Lower unit costs from buying in bulk
- A share of a partner's local knowledge
- Full control kept by the original owner
-
Why might the UK competition regulator block one supermarket chain from buying a rival?
- The firms are based in different countries
- The new firm would sell too many products
- Shoppers would be left with less choice
- Shareholders were offered too little cash
-
A firm borrows heavily to fund a takeover. What is the main risk it now faces?
- The lender takes control of the new firm
- Interest payments may swallow its profits
- Its shareholders lose limited liability
- It will pay a higher rate of corporation tax
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