The acquisition of a firm whose business is not related to that of the bidder is called a ________ acquisition.
A)conglomerate
B)forward
C)backward
D)horizontal
E)vertical

Question

Quizplus · Accepted Answer

A conglomerate acquisition refers to the acquisition of a firm that operates in a different business area or industry. This is in contrast to a vertical or horizontal acquisition where the target firm operates in the same industry or value chain as the bidder. Similarly, a forward or backward acquisition refers to the acquisition of a firm that is either a supplier or a customer of the bidder. Therefore, the correct choice is (A) conglomerate acquisition.

The Acquisition of a Firm Whose Business Is Not Related