Which of the following is an example of external growth?

External growth refers to a business expanding its operations or size through means that involve integrating with other businesses. This often occurs through mergers, acquisitions, or partnerships that allow a company to increase its market share, access new customer bases, or enhance its resources.

Acquiring another company is a key example of external growth as it directly involves a business purchasing another business to expand its operations. This strategy allows the acquiring company to rapidly increase its capabilities, assets, and market presence without having to develop these elements internally over time.

The other options reflect internal growth strategies. Opening a new branch, for instance, involves expanding the existing operations of a single business entity. Creating new product lines focuses on expanding the product offerings of the company itself rather than integrating with another business. Improving employee training is also an internal process aimed at enhancing the skills within the organization to boost productivity and efficiency, rather than growing through external means.