The addition of new product lines in a company is?

Correct answer: A. diversification

  • A. diversification
  • B. vertical integration
  • C. horizontal integration
  • D. geographic expansion

Explanation

Diversification occurs when a firm enters new product or business lines, especially when these differ from its existing offerings. Integration instead concerns combining stages of production or firms at the same business level.

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Management principles explain how organisations set objectives and coordinate people and resources to achieve them. Coverage includes planning, organising, staffing, directing, coordinating and controlling, along with authority, responsibility, delegation, span of control and the levels of management. These functions are related but not interchangeable, especially planning and controlling.

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