Describe the difference between the internal and external expansion of a firm.

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Answer 1

Question

Chapter 1, Problem 1Q

To determine

Describe the difference between the internal and external expansion of a firm.

Expert Solution & Answer

Explanation of Solution

Internal expansion is a process of normal increase in business in all aspects, as a result of increased demand for the products and services without acquiring any existing firms. Establishment of new product research to elaborate the total market, acquisition of major share in the market through promotional and advertising activities and expanding the business into new geographical areas also represents internal expansion.

External expansion represents the acquisition of one or more existing firms and managing all businesses together under common control. These combined operations may be integrated, or each firm may be left to operate intact.

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During the year, Minot Company produced 120,000 drills for industrial equipment. Minot's direct materials and direct labor standards are as follows: Direct materials (2.5 lbs. @ $4) Direct labor (0.6 hrs. @ $13) $ 10.00 7.80 1. Compute the standard pounds of direct materials allowed for the production of 120,000 units pounds. 2. Compute the standard direct labor hours allowed for the production of 120,000 unit hours.

Answer 2

Question

Chapter 1, Problem 1Q

To determine

Describe the difference between the internal and external expansion of a firm.

Expert Solution & Answer

Explanation of Solution

Internal expansion is a process of normal increase in business in all aspects, as a result of increased demand for the products and services without acquiring any existing firms. Establishment of new product research to elaborate the total market, acquisition of major share in the market through promotional and advertising activities and expanding the business into new geographical areas also represents internal expansion.

External expansion represents the acquisition of one or more existing firms and managing all businesses together under common control. These combined operations may be integrated, or each firm may be left to operate intact.

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Answer 3

Question

Chapter 1, Problem 1Q

To determine

Describe the difference between the internal and external expansion of a firm.

Expert Solution & Answer

Explanation of Solution

Internal expansion is a process of normal increase in business in all aspects, as a result of increased demand for the products and services without acquiring any existing firms. Establishment of new product research to elaborate the total market, acquisition of major share in the market through promotional and advertising activities and expanding the business into new geographical areas also represents internal expansion.

External expansion represents the acquisition of one or more existing firms and managing all businesses together under common control. These combined operations may be integrated, or each firm may be left to operate intact.

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03:07

Answer 4

Question

Chapter 1, Problem 1Q

To determine

Describe the difference between the internal and external expansion of a firm.

Expert Solution & Answer

Explanation of Solution

Internal expansion is a process of normal increase in business in all aspects, as a result of increased demand for the products and services without acquiring any existing firms. Establishment of new product research to elaborate the total market, acquisition of major share in the market through promotional and advertising activities and expanding the business into new geographical areas also represents internal expansion.

External expansion represents the acquisition of one or more existing firms and managing all businesses together under common control. These combined operations may be integrated, or each firm may be left to operate intact.

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03:07

Answer 5

Chapter 1, Problem 1Q

To determine

Describe the difference between the internal and external expansion of a firm.

Expert Solution & Answer

Explanation of Solution

Internal expansion is a process of normal increase in business in all aspects, as a result of increased demand for the products and services without acquiring any existing firms. Establishment of new product research to elaborate the total market, acquisition of major share in the market through promotional and advertising activities and expanding the business into new geographical areas also represents internal expansion.

External expansion represents the acquisition of one or more existing firms and managing all businesses together under common control. These combined operations may be integrated, or each firm may be left to operate intact.

Answer 6

Chapter 1, Problem 1Q

To determine

Describe the difference between the internal and external expansion of a firm.

Expert Solution & Answer

Explanation of Solution

Internal expansion is a process of normal increase in business in all aspects, as a result of increased demand for the products and services without acquiring any existing firms. Establishment of new product research to elaborate the total market, acquisition of major share in the market through promotional and advertising activities and expanding the business into new geographical areas also represents internal expansion.

External expansion represents the acquisition of one or more existing firms and managing all businesses together under common control. These combined operations may be integrated, or each firm may be left to operate intact.

Answer 7

Chapter 1, Problem 1Q

To determine

Describe the difference between the internal and external expansion of a firm.

Answer 8

Expert Solution & Answer

Explanation of Solution

Internal expansion is a process of normal increase in business in all aspects, as a result of increased demand for the products and services without acquiring any existing firms. Establishment of new product research to elaborate the total market, acquisition of major share in the market through promotional and advertising activities and expanding the business into new geographical areas also represents internal expansion.

External expansion represents the acquisition of one or more existing firms and managing all businesses together under common control. These combined operations may be integrated, or each firm may be left to operate intact.