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CVS's Recent Merger with Caremark, a Large Pharmaceutical Benefits Manager

Question 92

Multiple Choice

CVS's recent merger with Caremark, a large pharmaceutical benefits manager broadens CVS's business from retail into health care management. This strategy is __________ and allows CVS to gain __________.


A) unrelated diversification; operational relatedness
B) related diversification; financial economies
C) forward vertical integration; market power
D) virtual integration; market power

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