The Purchase of 80 Percent of Procter & Gamble's Pet-Food

question 103

True/False

The purchase of 80 percent of Procter & Gamble's pet-food brands by Mars Inc., best known for its M&M chocolates and its Mars and Snickers candy bars, is an example of related diversification.

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Definitions:

IPO

Initial Public Offering, the process by which a private company becomes publicly traded by offering its shares to the public for the first time.

Open Market

A system or environment where goods, services, and financial instruments are traded freely between participants without significant restrictions.

Return of Cash

The process of distributing cash to shareholders, usually in the form of dividends or the repurchase of shares, representing a return on their investment.

Venture Capitalists

Investors who provide capital to startups and early-stage companies with high growth potential in exchange for equity stakes or ownership interest.