Lesson 3.9.1

3.9.1 Assessing a change in scale Quiz: AQA Business, Unit 9

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.9.1, Assessing a change in scale: 20 multiple choice questions for the AQA Business (7132), Unit 9: Strategic methods: how to pursue strategies, written with Revision Ninja.

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The 20 questions

  1. How is organic growth typically achieved within a business?

    • Friendly takeover
    • Horizontal integration
    • Backward integration
    • Internal expansion

  2. Which method is used by a business to achieve external growth?

    • Mergers and takeovers
    • Increasing production capacity
    • Opening new branches
    • Launching new products

  3. Which type of business is acquired during backward vertical integration?

    • A customer
    • A competitor
    • A retailer
    • A supplier

  4. Which type of business is acquired during forward vertical integration?

    • A retailer
    • A supplier
    • A producer
    • A competitor

  5. Which type of business is acquired during horizontal integration?

    • A key supplier
    • A retail distributor
    • A component supplier
    • A direct competitor

  6. What type of growth occurs when a firm merges with an unrelated business?

    • Backward vertical
    • Forward vertical
    • Horizontal
    • Conglomerate

  7. Which method of growth involves one business granting another the right to trade under its brand in exchange for a fee?

    • Franchising
    • Takeover
    • Joint venture
    • Merger

  8. Which type of external growth involves two businesses agreeing to join together as equals?

    • Takeover
    • Merger
    • Strategic alliance
    • Joint venture

  9. Which type of economy of scale involves using larger, more efficient machinery to reduce unit costs?

    • Financial
    • Managerial
    • Technical
    • Purchasing

  10. What type of economy of scale allows large firms to negotiate bulk discounts from suppliers?

    • Managerial
    • Financial
    • Technical
    • Purchasing

  11. What term describes unit cost savings gained by producing a varied range of products?

    • Economies of scope
    • Economies of scale
    • Synergy
    • Overtrading

  12. What term describes the rise in unit costs that occurs when a business grows too large?

    • Diseconomies of scale
    • Economies of scale
    • Economies of scope
    • Overtrading

  13. Which concept describes a combined business being worth more than the sum of its parts?

    • Overtrading
    • Retrenchment
    • Benchmarking
    • Synergy

  14. What term describes a business expanding its sales so fast that it runs out of cash?

    • Overtrading
    • Diversification
    • Retrenchment
    • Under-capitalisation

  15. A firm's average cost falls from 50 pounds a unit to 40 pounds a unit as output doubles from 10,000 to 20,000 units. Which concept does this best illustrate?

    • Economies of scale
    • Overtrading
    • Retrenchment
    • Diseconomies of scale

  16. A firm experiences rapidly rising sales but faces severe liquidity shortages. What issue is this?

    • Diseconomies of scale
    • Cannibalisation
    • Retrenchment
    • Overtrading

  17. What is a major risk associated with growing a business through external acquisition?

    • Bulk purchase discounts
    • Lower unit costs
    • Cultural clashes
    • Increased synergy

  18. What strategic action involves reducing the overall scale or scope of a business's operations?

    • Retrenchment
    • Diversification
    • Integration
    • Franchising

  19. What is a main advantage to a business of expanding via franchising rather than direct ownership?

    • Elimination of risk
    • Total operational control
    • Lower capital required
    • Lower brand exposure

  20. Total cost rises from £400,000 to £500,000 as output rises from 10,000 to 15,000 units. Average cost:

    • Falls to £25.00
    • Falls to £33.33
    • Rises to £45.00
    • Rises to £50.00

All AQA Business quizzes