The Acquisition of a Firm Whose Business Is Not Related

question 22

Multiple Choice

The acquisition of a firm whose business is not related to that of the bidder is called a ________ acquisition.

• A)conglomerate
• B)forward
• C)backward
• D)horizontal
• E)vertical

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Definitions:

Internal Benchmarking

The process of comparing business processes and performance metrics to the best practices from within the same organization.

Process Benchmarking

The process of assessing business methods and performance statistics by benchmarking them against the best practices in the industry or those adopted by other companies.

Industry Benchmarking

The process of comparing a company's performance metrics with those of the leaders in its industry to identify areas for improvement.

Balanced Scorecard

The Balanced Scorecard is a strategic planning and management system that uses financial and non-financial performance metrics to monitor and improve an organization’s performance.