In a ________ Acquisition, One Company Buys Another That Offers

question 38

Multiple Choice

In a ________ acquisition, one company buys another that offers essentially the same products as the buyer but that has a presence in a geographic market in which the buyer has no presence.

• A) horizontal
• B) vertical
• C) product-extension
• D) market-extension

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Definitions:

Future Rate

The anticipated interest rate or exchange rate of a financial instrument at a future point in time.

Canadian Bill

Short-term government securities issued by the Canadian government, similar to Treasury bills in the United States.

Indifferent

Refers to a state or condition where an individual or decision-maker does not prefer one option over another due to a perceived equality in value or benefit.

Internationally-Diversified Portfolio

An investment portfolio that includes assets from a variety of countries outside the investor's home country to reduce risk and enhance returns.