The acquisition of businesses that are related to current product lines or that takes the corporation into new areas is referred to as
A) retrenchment.
B) diversification.
C) liquidation.
D) cash cow.
E) internal growth.

Question

Quizplus · Accepted Answer

Diversification involves acquiring businesses that are related to current product lines or that takes the corporation into new areas. Retrenchment involves cutting back on operations or selling off business units. Liquidation involves selling off all assets and going out of business. Cash cow refers to a business unit that generates a lot of cash for the corporation. Internal growth refers to expanding the business through increased sales and profits, rather than through acquisition.

The Acquisition of Businesses That Are Related to Current Product