_____ Involves Adding Products That Are Unrelated to the Present

question 38

Multiple Choice

_____ involves adding products that are unrelated to the present product line.

• A) Penetration
• B) Acquisition
• C) Specialization
• D) Diversification

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Definitions:

Positive Earnings

When a company’s income, excluding losses and expenses, is more than zero indicating profitability.

Convertible Bonds

Convertible bonds are types of bonds that can be converted into a predetermined number of shares of the issuing company's stock at certain times during the bonds' life, usually at the discretion of the bondholder.

Warrants

Securities that provide the holder the right to purchase the company's stock at a specified price before the expiry date.