Which of the Following Is an Example of an Internal

question 71

Multiple Choice

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

• A) licensing
• B) merger
• C) new product development
• D) strategic alliance
• E) franchising

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Definitions:

Distortionary Tax

A tax that causes people to alter their behavior and make different economic decisions than they would in a free market, potentially leading to inefficiency.

Efficiency

The extent to which resources are utilized optimally to achieve desired outcomes with minimum waste or effort.

Second Best

A concept in economics that suggests if all optimal conditions cannot be satisfied, the second-best option should be pursued.

Distortionary Tax

Taxes that cause people to alter their behavior in a way that distorts the allocation of resources from their most efficient uses.