Question

What is the difference between growth,expansion and diversification of a business enterprise?

Answer 1

Growth of a business enterprise is an increase in its turnover and operations over a period of time. Expansion of a business enterprise is the increase in the consumer base served by an enterprise over a period of time. Both these terms can be used interchangeably.

On the other hand, when a business enterprise increases the variety and catalogue of the products offered by it, the process involved is called diversification of business enterprise.