Higher Business Management – Understanding Business Practice Test

Session length

1 / 400

Introducing e-commerce is an internal growth method because it enables trading around the clock to a global market.

It is not an internal growth method

It increases production capacity

It can improve supply chain logistics

Introducing e-commerce allows the business to trade 24/7 to a global market

Expanding through e-commerce is an internal growth move because it uses the company’s existing products and capabilities to reach more customers, without needing to rely on external mergers or acquisitions. By selling online, the business can operate around the clock and access a global market, widening the sales channel and revenue opportunities from within. This direct extension of the business’s reach and hours is the hallmark of internal growth.

Other options touch on related areas, like producing more to meet demand or making the supply chain more efficient, but they don’t describe the method of growth through a new sales channel that enables continuous, global trading.

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