Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What is organic growth?

1. Growth through acquisition

2. Expansion by adding new products

3. Growth of a company’s existing business

4. Merging with other companies

The correct answer is: Growth of a company’s existing business

Organic growth refers to the process by which a company increases its output, sales, and market presence through its existing operations rather than through external means, such as acquisitions or mergers. This can happen through various strategies, such as improving sales to current customers, increasing operational efficiency, expanding into new markets, or enhancing service offerings. The essence of organic growth lies in leveraging internal resources and capabilities to drive expansion, which often leads to a more sustainable and manageable growth trajectory for the business. This contrasts with growth through acquisition, which involves taking over other companies, or merging with other firms, which may introduce complexities and integration challenges. Similarly, while adding new products is a valid growth strategy, it does not encompass the broader concept of enhancing a company’s existing business operations. Therefore, the focus on the expansion of existing business activities makes this answer the most accurate representation of organic growth.