Growth
Increase in business size measured by: revenue, profit, market share, employee count, asset value.
Formula
Growth Rate = ((Current Year Value − Previous Year Value) ÷ Previous Year Value) × 100
Real World
Amazon grew from an online bookstore to a $500bn revenue business through a combination of organic expansion into new services (AWS, Prime) and inorganic acquisitions such as Whole Foods.
Exam Focus
Specify which growth measure is relevant to the context — revenue growth and profit growth can tell very different stories.
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