Exam 2 Flashcards

1
Q

Diversification strategy where a firm expands into businesses that provide the supplies it needs to make its products or that distribute and sells its products

A

Vertical integration

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2
Q

Occurs when a company acquires another company in a completely unrelated business

A

Unrelated diversification

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3
Q

When a company purchases a new business that is related to the company’s existing business portfolio

A

Related diversification

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