Question:
1) Which of the following is an example of diversification:
a) Vertical integration
b) Cross-selling
c) Retail format development
d) Market penetration
e) Market expansion
2) A restaurant that specializes in using organic produce decides to buy a farm that practices organic farming. This is an example of:
a) Market expansion
b) Backward integration
c) Forward integration
d) Horizontal integration
Market Growth:
Diversification is a method in which businesses can tackle achieving greater market share. Integration is another method for attempting to achieve growth. Vertical integration includes backward and forward integration, while horizontal integration refers to buying a competitor's business.
Answer and Explanation:
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1) Which of the following is an example of diversification :
The correct answer is e) Market expansion.
To diversify, a company will expand to a new...
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