Final answer:
The acquisition of a business related to current product lines or entering new areas is called diversification, which is part of corporate growth strategies involving mergers and acquisitions.
Step-by-step explanation:
The acquisition of a business that is related to current product lines or that takes the corporation into new areas is called diversification. Corporations often grow larger by combining with other businesses, commonly through mergers or acquisitions. A merger involves two private firms joining together to form a single corporation. When one firm purchases another firm, it is known as an acquisition. In both scenarios, the resulting entity controls the previously separate firms under common ownership. Moreover, a conglomerate merger occurs when a firm owns multiple businesses that make unrelated products, which helps in diversification, allowing a corporation to protect itself by spreading out its risks.