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Z-Furn Is an Organization That Manufactures and Sells Office Furniture

question 11

Multiple Choice

 Z-Furn is an organization that manufactures and sells office furniture. It maintains a good name in this business and has strong capital resources. The organization decides to purchase a failing food product business in order to tap into the market of that company. Which of the following types of diversification is the firm pursuing?


Definitions:

Account

A record or statement of financial expenditure and receipts relating to a specific period or purpose.

Effective Rate

The actual interest rate an investor receives or pays after the effects of compounding interest and all charges are considered.

End-Of-Month Payments

Payments that are due at the end of each month, commonly found in loan and lease agreements.

Finance Company

A business that provides loans to individuals or other businesses and generates profit from the interest on these loans.

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