Which of the following is an example of internal expansion?
A) Peter's Oil sells home heating oil and services furnaces. Peter inherited the business from his father, with 10 home delivery trucks and 10 service technicians. Peter's father started the business with only two trucks and no technicians, and he frequently encourages his son to buy more trucks and take on more responsibility. But Peter, who has no offspring, says he wants to keep things as they are for now, and he will likely sell out to another company when it's time for him to retire.
B) Tex's Tuxes is quite the operation. Tex has a fleet of trucks from which he rents tuxedos. Any man or prom-age boy who wants a tux merely calls Tex and a truck appears at the man's home like a trusty steed. With a personality the size of Texas, Tex exuberantly shows off his styling in his ads, which feature real customers. Every so often, some other local tuxedo rental shop offers to buy Tex's business, but Tex says he likes the control and wants to keep things just as they are.
C) Jose's bookshop is the perfect shop for parents with small children. Every Friday evening is Jammie Night, when parents bring in children in their jammies and the kids get to hear three stories before bedtime. Jammie Night became so crowded that Jose bought the empty storefront next door to his bookshop to expand his space. He also now conducts Jammie Night on Saturdays as well as on Fridays.
D) Like Jose's bookshop, Bertha's bookstore also catered to parents with small children. Bertha gave away a free paperback mystery to anyone who bought four or more picture books at one time. Bertha's became so popular that a national bookstore chain bought her out and opened a branch of its retail shop in Bertha's space.
E) Andrew had been making and selling furniture from his garage for two years. Another local furniture maker with a larger presence invited Andrew to sell his wares in its shop for 5 percent of Andrew's profits. Andrew accepted the offer. In exchange, Andrew gets a lot of advertising from this other company and continues to make his own furniture.
Answer: C
Explanation: C) Jose expanded his own business without merging with another company or being acquired by another company. That is an example of internal expansion.
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