Question

4 difference between Internal Expansion & External Expansion

Answer 1

Answer:

Internal Expansion External expansion

(ii) Firm may expand its present production capacity by adding more machines or by replacing old machines with the new machinew (ii) Here two or more units engage in similar business or related process or stages ok

Answer 2

Answer:

INTERNAL EXPANSION

• It is the gradual increase in the activities of the concern.
• Firm may expand its present production capacity by adding more machines or by replacing old machines with the new machines.
• It result in the increase in business activities and broadening present capital structure.

EXTERNAL EXPANSION

• It is business combination where two or more firm combines and expand their business activities.
• Here two or more unit engaged in similar business or related process or stages.
• After combination the constituted firm pursues some common objectives or goals.

Hope it helpful.