In 2005, P&G, Whose Products Include Crest Toothpaste and Tide

question 101

Multiple Choice

In 2005, P&G, whose products include Crest toothpaste and Tide laundry detergent, purchased Gillette. Gillette itself had multiple businesses, including a range of products including electric toothbrushes, razors and batteries. Which of the following reflects the acquisition?

• A) It is unrelated diversification for P&G because Gillette consists of more than one business unit.
• B) It is unrelated diversification for Gillette because P&G consists of more than one business unit.
• C) It is related diversification for P&G because the product lines for both firms are consumer products sold through similar channels.
• D) It is related diversification for Gillette because the product lines for both firms are consumer products sold through similar channels.

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Definitions:

Official Institutions

Formal organizations recognized by the government or society at large that play a significant role in public and administrative life.

Racial Formation

A process by which social, economic, and political forces determine the content and importance of racial categories, and by which they are in turn shaped by racial meanings.

Somatogenic

Pertaining to the idea that mental disorders originate from biological, physiological, or bodily causes.

Psychotropic

Pertaining to drugs that affect a person's mental state, used to treat psychiatric disorders and conditions.