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With reference to a recent takeover bid in the news, assess whether takeovers are the best method of growth for a business (20 marks)  

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With reference to a recent takeover bid in the news, assess whether takeovers are the best method of growth for a business (20 marks) There are various ways in which a business can grow; one of which is diversification. Diversification is when a company expands its activities outside its normal range; possible reasons being, to expand into possible markets or to reduce risk. For example, selling a range of different products to different groups of consumers will mean that if any one product fails, sales of the other products should keep the business healthy. Another way a business can grow in internally. This is where a business increases its size through investing in its existing product range, or by developing new products. This will normally be financed through the use of retained profits (from previous trading years), bank loans or, if the business is a PLC, through the issue of shares. This...

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