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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