Which of the Following Is an Example of an External

question 69

Multiple Choice

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

• A) Geographic expansion
• B) Improving an existing product or service
• C) Increasing the market penetration of an existing product or service
• D) Extending product lines
• E) Strategic alliances

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Definitions:

Operating Profit

Earnings before interest and taxes (EBIT), representing the profit a company makes from its operations after subtracting operating expenses from revenue.

Sales Mix

The proportion of different products or services that make up the total sales of a company.

Unit Contribution Margin

The amount each unit sold contributes to covering fixed costs and generating profit, calculated by subtracting variable costs per unit from the selling price per unit.

Break-Even Point

The financial point at which total revenues equal total costs and expenses, resulting in no net loss or gain.