Which growth occurs when a business grows internally, using its own resources to increase scale, also known as internal growth?

• A. Organic Growth (Internal)
• B. Product Development
• C. Merger
• D. Market Development

Answer: (A)

Organic growth means expanding a business using its own resources and capabilities, not by merging with or acquiring another company. It includes increasing output, improving productivity, and expanding product lines or markets with internal funds. That’s exactly internal growth—the company grows from within. In contrast, a merger is external growth through combining with another firm, and market development is about entering new markets, which typically involves external expansion. Product development is about creating new products, which can be part of internal expansion but is more specific in scope; the broader term for growth from internal resources is organic growth.