How businesses grow, and linkage industries
A business can grow from inside, by opening outlets and hiring, or from outside, by joining with another firm. Industries also grow together when one industry’s output becomes another’s input: a linkage. Paper 1 asks what a linkage is in most years.
By the end of this page you can
- Explain internal and external growth, with examples
- Tell backward from forward linkage
- Explain the effects of growth on a business
- Define economies of scale
Goals tick themselves off as you try the activities below.
Photo: Abdulybature, CC BY-SA 4.0, via Wikimedia Commons. Cropped (a bystander cropped out), the business’s name blurred, resized, JPEG q72.
A furniture maker uses the timber industry’s output: two industries linked.
How often it shows up in past papers
All papers21 of 23 papers
Last 55 of 5 · 2023–2026
Paper 1 counts come from our past-paper bank of CSEC Principles of Business Paper 1s. The last-5 row shows how often it came up in the five most recent papers.
Inside this topic
- Ways to growLocked
- Effects of growthLocked
- Key termsLocked
- Test yourselfmarkedLocked
- Practise for real · 16 past questionsLocked