Dragonfly Publishers of children's books has purchased White Rabbit,another publisher of children's books. Both companies' books are sold to the same retail stores and schools. Their content is different,since Dragonfly produces children's literature,whereas White Rabbit focuses on child-level scientific and nature topics. Which of the following statements is probably TRUE about this acquisition?
A) This is a horizontal acquisition.
B) This is an example of virtual integration.
C) Dragonfly is beginning to build a conglomerate.
D) Economies of scope are unlikely to result from this acquisition.
Correct Answer:
Verified
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