Neon Colors Corp., a well-established apparel industry, increased its corporate value by purchasing a footwear company as part of its growth strategy. It purchased the footwear company because developing its own operations and processes would be expensive and time consuming. This is an example of a(n)_________.

Question

Quizplus · Accepted Answer

The scenario describes Neon Colors Corp. purchasing a footwear company in order to increase its corporate value and avoid the expense and time associated with developing its own operations and processes. This is known as an acquisition, where one company buys another to gain growth, increased market share, expertise, or other benefits. A merger, on the other hand, involves two companies combining to form a new entity. Brownfield entry refers to a company entering a market by purchasing existing facilities or infrastructure, while greenfield entry involves building new facilities from scratch. Neither of these options is applicable to the scenario presented.