When a company purchases another business that does


1. When a company purchases another business that does something different from what the purchasing company does, the purchasing company is using a strategy of

A. unrelated diversification

B. vertical integration

C. related diversification

2. Pretend that you own a small coffee shop. You have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring a coffee cup manufacturer across town. This is an example of .

A. vertical integration

B. unrealted diversification

C. related diversification

3. Diversification is most frequently associated with a strategy of .

A.stability

B. growth

C. retrenchment

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Operation Management: When a company purchases another business that does
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