Questions: Multiple Choice Question What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products? A. Fabrication B. Diversification C. Arbitration D. Isolation

Multiple Choice Question What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products? A. Fabrication B. Diversification C. Arbitration D. Isolation
Transcript text: Multiple Choice Question What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products? A. Fabrication B. Diversification C. Arbitration D. Isolation
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Solution

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The answer is B: Diversification.

Explanation for each option:

A. Fabrication - This term generally refers to the process of manufacturing or constructing something, often used in the context of creating physical products. It does not relate to acquiring a company in a different industry.

B. Diversification - This is the correct answer. Diversification is a strategy where a company expands its operations by acquiring or merging with businesses in different industries. In this case, American Tile Corp. acquiring a company that makes industrial cleaning products is an example of diversification, as it is expanding into a different market sector.

C. Arbitration - This is a method of dispute resolution where an independent third party makes a decision to resolve a conflict. It is not related to business acquisition strategies.

D. Isolationism - This term is typically used in a political context to describe a policy of remaining apart from the affairs or interests of other groups, especially the political affairs of other countries. It does not apply to business strategies involving acquisitions.

Therefore, the strategy being used by American Tile Corp. is diversification.

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