Future Business Leaders of America (FBLA) Business Management Practice Test

The goal of a growth strategy is to do what?

1. Maintain the current sales level

2. Expand sales, products, or personnel

3. Reverse negative trends

4. Reduce operating costs

The correct answer is: Expand sales, products, or personnel

The goal of a growth strategy is to expand sales, products, or personnel. This approach is fundamental for businesses aiming to increase their market share, reach new customers, or enhance their offerings. By focusing on growth, companies can pursue various methods such as introducing new products, entering new markets, or hiring additional staff to support these initiatives. These actions enable a business to resilience against market fluctuations and stay competitive. In contrast, maintaining current sales levels might reflect a stabilization approach rather than a growth-oriented one. Addressing negative trends could be a reactionary strategy, focusing on remedying downturns rather than proactively expanding. Reducing operating costs is typically associated with efficiency improvements rather than growth, as it emphasizes cost management over increasing revenue or market presence. Thus, the expansion of sales, products, or personnel remains the defining focus of a growth strategy.