A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. What form of diversification is this?

A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. What form of diversification is this? Correct Answer Unrelated

A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. Unrelated form of diversification is this. Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets.

Related Questions

In the past year, there has been a large drop in the member of new cars sold due to harsh economic conditions in the market place and high taxes. At the same time, the average price paid for a new car has risen dramatically. Which of the following, if true, best explains the increase in the average price of a new car?