Which Type of Diversification Involves Moving into Businesses That Are

question 67

Multiple Choice

Which type of diversification involves moving into businesses that are related to the company's original core business?

• A)concentric
• B)conglomerate
• C)vertical
• D)functional
• E)horizontal

---

Definitions:

Interest Rate Collar

A derivative strategy that combines an interest rate cap and floor to limit exposure to interest rate fluctuations.

Lower Bound

A minimum value or limit that a variable, such as a stock price or interest rate, can assume.

Upper Bound

The maximum limit or highest achievable level of a particular measurement.