Porsche Automobil Holding and Volkswagen own each other's stock.They plan to integrate the companies in 2011.This diversification strategy is ____.

Question

Quizplus · Accepted Answer

The diversification strategy of Porsche and Volkswagen is a merger, which involves the integration of two or more companies into a single entity. This is evident in the fact that they plan to integrate the companies in 2011, implying that they aim to form a new, combined company that will draw on the strengths and assets of both firms. A merger typically involves the exchange of stock and other assets, as well as the assumption of liabilities by the acquiring company. Therefore, choice E, merger, is the best option.

Porsche Automobil Holding and Volkswagen Own Each Other's Stock