external growth
What external growth means in Business A-Level, as defined for AQA.
Definitions of external growth
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Reference: AQA
A merger, takeover, joint venture or franchise agreement, delivering capacity, customers and capability when the deal completes.
Growth through mergers or takeovers, which is faster but more expensive and carries risks of culture clashes.
Topics that use external growth
- Assessing a change in scale (AQA A-Level)
Related terms
- capacity utilisation
- Economies of scale
- Franchising models
- gearing
- integration cost
- interest cover
- Methods of external growth
- organic growth
Using external growth in the exam
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