Which of the Following Is an Example of an External

question 21

Multiple Choice

Which of the following is an example of an external growth strategy?

• A) New product development
• B) Mergers and acquisitions
• C) Market penetration
• D) Product line extension
• E) Geographic expansion

---

Definitions:

Macroeconomics

The study of economy-wide phenomena, including inflation, unemployment, and economic growth.

Consumption

The use of goods and services by households for personal needs or the process of using up resources or goods, leading to a decrease in their availability.

Investment Incentives

Investment incentives are benefits or policies designed to encourage businesses or individuals to invest in certain areas or sectors.

Interest Rate

Lenders require a payment, portrayed as a percentage of the principal, from borrowers for the use of their assets.