When a company combines with firms in different and dissimilar industries, it indulges in ________.
A) unrelated diversification
B) horizontal integration
C) vertical integration
D) focused diversification

Question

Quizplus · Accepted Answer

Unrelated diversification involves a company expanding into businesses that are not related to its current line of products or services. Combining with firms in different and dissimilar industries falls under this category. Horizontal integration involves combining with firms that operate at the same level of the supply chain to increase market power, while vertical integration involves combining with firms in different stages of the supply chain for better control over inputs and distribution. Focused diversification involves expanding into related businesses to leverage existing competencies.

When a Company Combines with Firms in Different and Dissimilar