Asked by Jaiden Hamilton on Apr 30, 2024
Verified
Which of the following is true of a congeneric merger?
A) The combining companies sell the same product or service.
B) The merger is likely to improve the acquirer's competitive position.
C) The combining companies are in completely different industries.
D) The level of competition in the acquirer's industry is drastically reduced.
Congeneric Merger
A merger between companies in the same industry but not the same line of business, aiming for synergies or diversification.
Competitive Position
Describes a company's standing and strategy in comparison to its competitors within the industry.
- Recognize various kinds of mergers and their strategic justifications.
- Comprehend the repercussions of mergers on the economic and competition aspects of industries.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
B
Explanation :
A congeneric merger involves companies in the same or related industries but do not necessarily offer the same product or service. It can improve the acquirer's competitive position by expanding its product lines or market reach.
Learning Objectives
- Recognize various kinds of mergers and their strategic justifications.
- Comprehend the repercussions of mergers on the economic and competition aspects of industries.