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logire logire
wrote...
Posts: 732
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7 years ago
When Google purchased YouTube, a company that featured different, but related products, Google was engaging in which of the following?
A) concentration
B) forward vertical integration
C) backward vertical integration
D) diversification
Textbook 
Fundamentals of Management: Essential Concepts and Applications

Fundamentals of Management: Essential Concepts and Applications


Edition: 9th
Authors:
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Creighton University

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wrote...
7 years ago
D
Explanation:  D) Google was clearly not focusing on existing products, taking control of distribution or supply, so those choices can be ruled out as correct responses. What Google was doing was buying a company that it can use to complement or support its existing products. YouTube makes Google a more diversified product, so the purchase is an example of diversification, making that the correct response.
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