Adding a Related or Complementary Product to a Corporation's Business

question 37

Multiple Choice

Adding a related or complementary product to a corporation's business units is called

• A) concentration.
• B) horizontal growth.
• C) concentric diversification.
• D) vertical growth.
• E) conglomerate diversification.

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Definitions:

Cash Burn

The rate at which a company spends its cash reserves, especially in the context of startups or new ventures.

Monthly Cash Expenses

The total amount of money spent by a business within a month for operational activities, excluding non-cash expenses.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value due to changes in interest rates.

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into a known amount of cash.