Expanding the size of a firm by adding another firm through its purchase or other means of merger is Internal Growth.Question 21Select one:TrueFalse

The statement is False.

When a firm expands its size by merging with or acquiring another firm, this process is known as external growth rather than internal growth. Internal growth refers to a firm's expansion through its own resources and capabilities, such as increasing production capacity, launching new products, or entering new markets without involving outside firms.

External growth involves strategic partnerships, mergers, or acquisitions, where a company grows by leveraging the resources and capabilities of another firm. This distinction is important in understanding different growth strategies available to businesses and the implications of each approach on their operations, culture, and market positioning.