The Movement into an Adjacent, or Unrelated, Market That Is

question 48

Multiple Choice

The movement into an adjacent, or unrelated, market that is not along a firm's own value chain defines the term _________.

• A)horizontal diversification
• B)vertical specialization
• C)forward integration
• D)backward integration

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Definitions:

Asset Turnover

A financial ratio that measures the efficiency of a company’s use of its assets in generating sales revenue.

Sales Revenue

The gross revenue is the entirety of income that comes from selling products or services, prior to deducting any costs.

Total Invested Capital

The sum of a company's equity and debt capital, representing the total amount of capital invested in the business.

Profit Margin

A financial performance ratio that shows the percentage of profit a company makes for each dollar of sales.