Expansion by merging with or taking over another business is known as what?

Expansion by merging with or taking over another business is known as what?

• A. Inorganic Growth
• B. Organic Growth
• C. Joint Venture
• D. Merger

Answer: (A)

Inorganic growth is about expanding by external means, such as merging with or taking over another business. This contrasts with organic growth, which comes from a company’s own operations—like launching new products, improving processes, or expanding within existing markets. A joint venture is a collaborative arrangement with shared ownership, not a full external expansion, so it’s not the general method described. A merger is a specific event of combining two firms, which is a form of inorganic growth, but the question points to the broader concept of growth through external actions rather than naming a single event.

Inorganic growth is about expanding by external means, such as merging with or taking over another business. This contrasts with organic growth, which comes from a company’s own operations—like launching new products, improving processes, or expanding within existing markets. A joint venture is a collaborative arrangement with shared ownership, not a full external expansion, so it’s not the general method described. A merger is a specific event of combining two firms, which is a form of inorganic growth, but the question points to the broader concept of growth through external actions rather than naming a single event.