Final answer:
The process where a company acquires a business related to current product lines, or enters new areas, is termed diversification. This can be done through mergers or acquisitions, with the former referring to combining two equal firms and the latter to one firm buying another.
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. This strategy involves a company broadening its range of products or market territory, which can be accomplished through various forms of growth, including mergers and acquisitions. While a merger occurs when two companies of equal power and status join together to form a single corporation, an acquisition refers to one firm buying another, potentially allowing the company to enter new markets or product lines.