Acquisitions that result in diversification are used in the staging of corporate strategies.

Question

Quizplus · Accepted Answer

Acquisitions that result in diversification are often used as a means of implementing a corporate strategy that involves expanding into new markets or product lines to reduce risk and increase opportunities for growth. By acquiring companies that operate in different industries or serve different customer segments, a company can diversify its revenue streams and achieve economies of scale and scope that would be difficult to achieve through organic growth alone. This can help to mitigate the risks associated with operating in a single industry or market, and position the company for long-term success.

Acquisitions That Result in Diversification Are Used in the Staging