When an Acquiring Firm That Desires to Expand to a New

question 61

Multiple Choice

When an acquiring firm that desires to expand to a new market where it does not have a product merges with a firm in that market,and continues to produce the other firm's product in the target market,it results in which of the following type of merger?

• A)Vertical extension
• B)Market extension
• C)Diversification
• D)Product extension
• E)Horizontal extension

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Definitions:

Product Departmentation

Product Departmentation is an organizational structure method where a company is divided into departments based on the products or product lines they manage or produce.

Organization Size

The scale or extent of an organization, typically measured by the number of employees, revenue, or operational scope.

Matrix Departmentation

Employees remain members of a functional department while also reporting to a product or project manager.

Functional Department

A specialized unit within an organization focusing on a specific function or area, like marketing or finance.