Distinguish between Internal and External Expansion. - Vidyadip

Question

Distinguish between Internal and External Expansion.

✓

Answer

S. No	Internal Expansion	External Expansion
1.	It is the gradual increase in the activities of the concern.	It is a business combination where two or more firms combine and expand their business activities.
2.	Firm may expand its present production capacity by adding more machines or by replacing old machines with the new machines.	Here two or more units engage in similar business or related process or stages.
3.	It results in the increase in business activities and broadening the present capital structure.	After combination, the constituted firm pursues some common objectives or goals.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "5 Marks Question" from Enterprise Growth Strategies→Enterprise Growth Strategies — all question types→Entrepreneurship STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

Define budgetary control. State how "budgetary control” helps an entrepreneur?

Explain the concept of ABC Analysis.

What are the various ways in which an entrepreneur spots trends?

Classify the following into fixed cost and variable cost:

Rent of a Godown.
Minimum telephone bill.
Interest on capital invested by an entrepreneur.
Salary to permanent staff.
Cost of raw-material, payment of transportation of goods.
Daily wages of sweepers.
Telephone charges beyond the minimum.

The School Gear Ltd. manufactures three products — Tiffin covers; Bottle covers; Pencil pouch. The variable expenses and sales prices of all these products are given below:

	Tiffin Covers	Bottle Covers	Pencil Pouch
Sales price per unit	₹ 200	₹ 100	₹ 75
Variable cost per unit	₹ 100	₹ 60	₹ 25

The total fixed expenses of the company are 55,000 per month. For the coming month, it expects the sale of three products in the following proportions:
Tiffin covers: 20%
Bottle covers: 50%
Pencil pouch: 30%
Compute the break-even point of company in units and rupees for the coming month.

Candy Sons produces Chocolates Cadbury Crunchie and Brunch Bar. Fixed costs are 25,80,00 per year. Sales revenue and variable costs per unit are as follows:

Sales Price per Unit	40	50
Variable Cost	16	10

Suppose the company currently sells 70,000 Cadbury Crunchie per year and 30,000 Brunch Bar per year (Sales Mix Percentage 7:3 ). Assuming the sales mix stay: constant how many Cadbury Crunchie and Brunch Bar must the company sell to break even?
Suppose the company currently sells 3,000 Cadbury Crunchie per year and 7,000 Brunch Bar per year (Sales mix percentage 3:7). Assuming the sales mix stay: constant, how many Cadbury Crunchie and Brunch Bar must the company sell to break even per year?
Explain why the total number of chocolates needed to break even in (a) is the same as or different from the number in (b).

Jumbo Jee Company started a business of making three type of sauces Soya Sauce, White Sauce, Tomato Sauce. Fixed costs are 12,90,000 per year. Sales revenue and variable costs per unit are as follows:

	Soya Sauce	White Sauce	Tomato Sauce
Sales Price (₹)	80	45	60
Variable Costs	40	15	15
Bottle	100	40	60

From the following information calculate :

Prepare an income statement for calculating gross contribution margin for all product.
Contribution margin per unit
Contribution margin for 20 bottles
Over all Break-even point
Statement showing at break even, fixed expenses = contribution margin.

Explain ABC Analysis of Inventory Control.
OR
Which items of inventory claim bulk of the values?

What does 'product' mean in marketing mix? Explain the various elements of product mix.

"If you don't adapt, you don't endure." Evaluate the validity of the statement.