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.

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Definitions:

Organizational Architecture

The structure and systems used by a firm to align its strategies with the behavior of its employees, comprising decision rights, rewards, and organizational boundaries.

Customer Location

Refers to the geographical area where a company's potential or actual customers are situated.

Divisions Defined

The categorization and separation of organizational tasks or functions into distinct units for management purposes.

Transfer-Pricing

The pricing of goods, services, and intangible property bought and sold by operating units or divisions within the same company.