In a ________ acquisition, the acquiring company expands its product line by purchasing another company.
A) horizontal
B) vertical
C) product-extension
D) market-extension

Question

Quizplus · Accepted Answer

A product-extension acquisition is when a company acquires another company to expand its product line, by adding complementary or similar products to its existing offerings. This allows the acquiring company to diversify its product portfolio and capture new market share.

In a ________ Acquisition, the Acquiring Company Expands Its Product