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A company makes a decision to expand only by developing new stores internally. The company can best be described as using which of the following?

(a) The vehicle of organic growth
(b) The vehicle of acquisition

User SuperK
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Final answer:

A company expanding by developing new stores internally uses the vehicle of organic growth, focusing on internal resources and capabilities to increase its size and reach.

Step-by-step explanation:

When a company makes the decision to expand by developing new stores internally, without acquiring other businesses or merging, it can be described as using the vehicle of organic growth. This method allows the company to grow at a pace it can control and involves reinvesting profits back into the business, for instance, by improving facilities, hiring additional labor, or purchasing technology. It does not entail the complexities and potential legal challenges of mergers and acquisitions, where antitrust laws can come into play to regulate competition or even require large firms to split into smaller entities.

User Yifan Zhang
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