Which of the following refers to the acquisition of businesses that are related to current product lines or that takes the corporation into new areas?
A) retrenchment.
B) diversification.
C) liquidation.
D) cash cow.
E) internal growth.

Question

Quizplus · Accepted Answer

Diversification refers to the acquisition of businesses that are related to current product lines or that takes the corporation into new areas, whereas retrenchment means reducing or cutting back on the scale or scope of operations, liquidation means the sale of all assets, distribution of the proceeds among creditors, and permanent closing of the business, cash cow refers to a business unit that generates significant profits for the company, and internal growth means expanding the business through increased sales or new product development without making acquisitions.

Which of the Following Refers to the Acquisition of Businesses