Florance is a chain of flower shops in the Chicago area. The company recently acquired Knick-knacks, which owns three gift shops. Which of the following is most similar to this acquisition?
A) A construction firm acquired a textile manufacturer as it seemed like a good investment.
B) Faced with mounting raw material costs, a consumer goods producer took over its supplier.
C) One shoe store chain buys out another shoe store chain and expands its distribution channels through the acquired chain's outlets.
D) A toy retailer acquired a children's book store chain and now retails both toys and books from co-branded outlets.

Question

Quizplus · Accepted Answer

The acquisition of Knick-knacks by Florance is similar to a toy retailer acquiring a children's book store chain and expanding its product offerings through co-branded outlets. Just as Florance expanded its offerings with the addition of gift shops, the toy retailer expanded its offerings by adding books to its merchandise lineup. Both acquisitions involve adding complementary products to an existing business to increase sales and expand customer reach.

Florance Is a Chain of Flower Shops in the Chicago