Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is NOT a characteristic of a growing organization?

1. Increased market share

2. Stable revenue levels

3. Expansion into new markets

4. Development of new products

The correct answer is: Stable revenue levels

A growing organization typically experiences characteristics that indicate progress and expansion. Stable revenue levels do not align with the expectations of growth, as growth is often marked by increasing revenues rather than maintaining them at a consistent level. Increased market share, expansion into new markets, and development of new products are all indicators of a growing organization. Increased market share suggests that the organization is successfully capturing a larger portion of the market, which is a direct reflection of growth. Expansion into new markets showcases the organization's efforts to broaden its customer base and reach new segments, further contributing to growth. Additionally, developing new products is vital for innovation and meeting evolving customer needs, which also drives growth by attracting new customers and retaining current ones. Therefore, stable revenue levels do not reflect the dynamic changes expected in a growing organization, making it the appropriate answer to this question.