Which headline is of an example of external expansion? A) Riley, Inc.

QUESTION

Which headline is of an example of external expansion?

A) Riley, Inc., Buys McSweeney’s, Becomes Ireland’s Biggest Potato Exporter
B) McDonald’s Sells Seven Franchises, Expands Into York County
C) Whittaker’s Furniture Opens Third Store in Massachusetts
D) Jade Carpet Cleaners, Inc., Lands Fourteen Corporate Accounts
E) Dexter’s Doughnuts Buys Licenses to Open Restaurants in the Southwest

ANSWER

Answer: A
Explanation: A) External expansion occurs when one company merges with or buys another company or companies, such as here, where Riley acquires McSweeney’s.