XYZ Cake Mix Company Is Merging with the ABC Petroleum

question 160

Multiple Choice

XYZ Cake Mix Company is merging with the ABC Petroleum Company. This is an example of

• A) conglomerate diversification.
• B) related diversification.
• C) product development.
• D) geographic expansion.
• E) none of these.

---

Definitions:

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Corporation

A corporation is a legal entity that is separate from its owners, providing them with limited liability. It is capable of owning assets, borrowing money, and being sued or suing.

Conflict

A struggle or contest between people with opposing needs, ideas, beliefs, values, or goals.

Mediate

To intervene in a dispute in order to resolve it or bring about a settlement.