In a ________ acquisition, one company buys another that offers essentially the same products as the buyer but that has a presence in a geographic market in which the buyer has no presence.
A) horizontal
B) vertical
C) product-extension
D) market-extension

Question

Quizplus · Accepted Answer

In a market-extension acquisition, the buyer acquires a company that has a presence in a geographic market where the buyer has no presence. This helps the buyer expand its reach and increase market share. A horizontal acquisition involves acquiring a competitor, while a vertical acquisition involves acquiring a company that operates in a different stage of the value chain. A product-extension acquisition involves acquiring a company that offers complementary products.

In a ________ Acquisition, One Company Buys Another That Offers