If a computer software ﬁrm were to acquire an oil company, the acquisition would be classiﬁed as a:
A) Leveraged buyout.
B) Vertical acquisition.
C) Strategic alliance.
D) Conglomerate acquisition.
E) Horizontal acquisition.

Question

Quizplus · Accepted Answer

The acquisition of an oil company by a computer software firm would be classified as a conglomerate acquisition, as the two companies operate in completely different industries.

If a Computer Software ﬁRm Were to Acquire an Oil