When an Organization Attempts to Grow by Merging with or Acquiring

question 153

Multiple Choice

When an organization attempts to grow by merging with or acquiring firms in different and unrelated industries, the strategy is known as a __________ strategy.

• A) unrelated diversification
• B) horizontal integration
• C) vertical integration
• D) unrelated differentiation
• E) retrenchment

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Definitions:

Accounts Receivable

Accounts Receivable refers to the money owed to a company by its customers for products or services delivered or used but not yet paid for.

Trial Balance

A bookkeeping report that lists the balances of all ledger accounts to verify that total debits equal total credits.

Asset

An economic resource owned or controlled by an individual or entity that is expected to produce future benefits.

Service Revenue

Income earned by a company for the services it has provided to its customers.