PepsiCo Purchased KFC So That It Could Replace Coke Products

question 74

Multiple Choice

PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This is an example of a ________ strategy.

• A)horizontal integration
• B)vertical integration
• C)low-cost
• D)global

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Definitions:

Common Stock Dividend Distributable

A liability on the balance sheet representing the amount of dividends that have been declared by the company but not yet paid to shareholders.

Liability Account

A financial accounting term for obligations or debts that a company owes to others.

Stock Dividend

A dividend paid to shareholders in the form of additional shares of stock, rather than cash.

Corporate Assets

Assets owned by a corporation, including cash, inventory, property, and intellectual property, that are used in the operation of the company.