Opening new branches to reach new markets is a method of internal growth.

• A. It increases costs
• B. It reduces production capacity
• C. It allows the business to reach new markets by opening up in new locations
• D. It eliminates the need for staff

Answer: (C)

Expanding by opening new branches is a form of internal growth, meaning the company grows using its own resources to increase its operations and market reach. By placing locations in new areas, the business can access new customer bases and boost sales without combining with another company. This directly achieves growth from within, rather than through external moves like acquisitions or partnerships.

Opening new branches typically increases capacity and the potential customer reach, which is why it fits as internal growth. It doesn’t remove staff or automatically cut costs; in fact, it often means more staff and higher expenses to support the expanded network.