__________ Occurs When a Firm Invests in Different Types of Businesses

question 106

Multiple Choice

__________ occurs when a firm invests in different types of businesses or products or when it expands geographically to reduce its dependence on a single market or technology.

• A) Domain selection
• B) Diversification
• C) An acquisition
• D) Divestiture
• E) A merger

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Definitions:

Operating

Pertains to the regular, ongoing activities of a business that are involved in the production or sale of goods and services.

GAAP

Generally Accepted Accounting Principles; a framework of accounting standards, rules and procedures defined by the professional accounting industry, used to compile financial statements.

FASB

The Financial Accounting Standards Board, an organization that establishes financial accounting and reporting standards in the United States.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions pertaining to a business, leading to the creation of financial statements.