Multiple choice

<p>Which type of growth if Pizza Hut bought Armani clothing?</p>

  1. Forwards Vertical

  2. Organic

  3. Horizontal

  4. Diversification
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Diversification occurs when a business enters a completely new market or industry that is unrelated to its current operations. Since Pizza Hut operates in the fast-food industry and Armani is a luxury fashion brand, this acquisition represents conglomerate diversification. Vertical and horizontal integration involve firms in the same or related supply chains.

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