Asked by Raman Chahal on Jul 14, 2024
Verified
A conglomerate merger
A) can extend the line of products sold, extend the territories in which products are sold, or combine totally unrelated products.
B) is defined as a merger involving two firms that previously had a buyer-seller relationship.
C) is defined as a merger involving two firms producing the same or similar products and selling them in the same geographical market.
D) is illegal, per se.
Conglomerate Merger
A type of merger where two or more companies in unrelated business areas combine operations.
Buyer-Seller Relationship
The interactions and exchanges between a buyer and a seller, including transactions, communication, and any long-term engagements.
- Distinguish among the different forms of mergers and assess their impact on competition within the marketplace.
Verified Answer
MH
Megan HuynhJul 16, 2024
Final Answer :
A
Explanation :
A conglomerate merger involves combining companies that operate in unrelated business activities, which can lead to diversification in products, markets, or both. It does not necessarily involve firms with a prior buyer-seller relationship (B), firms in the same market (C), nor is it illegal per se (D).
Learning Objectives
- Distinguish among the different forms of mergers and assess their impact on competition within the marketplace.