If GE, a highly diversified company, were to acquire Ocean Freight Limited, the acquisition would be classified as a ________ acquisition.
A) horizontal
B) longitudinal
C) conglomerate
D) vertical
E) integrated

Question

Quizplus · Accepted Answer

Since GE and Ocean Freight Limited operate in different industries, the acquisition would be classified as a conglomerate acquisition. A conglomerate acquisition occurs when a company acquires another company that operates in a different industry or business line, in contrast to a horizontal acquisition (where the target company operates in the same industry as the acquirer), a longitudinal acquisition (where the target company is a supplier or customer of the acquirer), or a vertical acquisition (where the target company is either a supplier or customer or operates in a different stage of the same value chain as the acquirer). An integrated acquisition is not a usual term used to classify an acquisition.

If GE, a Highly Diversified Company, Were to Acquire Ocean