Which of the Following Refers to the Acquisition of Businesses

question 157

Multiple Choice

Which of the following refers to the acquisition of businesses that are related to current product lines or that takes the corporation into new areas?

• A) retrenchment.
• B) diversification.
• C) liquidation.
• D) cash cow.
• E) internal growth.

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Definitions:

Interest

A fee applied to borrowed funds, usually calculated as a percent of the principal amount.

Loan

A sum of money that is borrowed, typically from a financial institution, and is expected to be paid back with interest.

Months

Units of time, each approximately 30 days long, used to measure durations and periods in a year.

Investment

Channeling funds into ventures with the expectancy of generating income or profit.