________ takes place when a company combines with other companies in different, but associated, industries.
A) Stabilized diversification
B) Horizontal integration
C) Vertical integration
D) Related diversification
Question 2
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.
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