Which of the Following Would NOT Be a Recommended Diversification

question 33

Multiple Choice

Which of the following would NOT be a recommended diversification strategy?

• A)Backward integration.
• B)Horizontal integration.
• C)Forward integration.
• D)Integration into markets unrelated to existing products.

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Definitions:

LIFO

Last In, First Out, an inventory accounting method where the last items added to inventory are the first ones to be used or sold, affecting cost of goods sold and inventory valuation.

Replacement Cost

The cost to replace an asset with another of similar nature and quality in its current condition.

Current Revenues

Income that a company receives from its normal business activities, typically from the sale of goods and services, within the current accounting period.

LIFO Reserve

The difference in the value of inventory under the Last-In-First-Out (LIFO) method compared to the First-In-First-Out (FIFO) method, reflecting the impact of inflation on inventory costs.