BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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horizontal merger
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conglomerate
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depreciation
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multinational
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vertical merger
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Detailed explanation-1: -The biggest risk in a conglomerate merger is the immediate shift in business operations resulting from the merger, as the two companies operate in completely different markets and offer unrelated products/services.
Detailed explanation-2: -A conglomerate merger is a merger of two firms that have completely unrelated business activities. There are two types of conglomerate mergers: pure, where the two firms continue to operate in their own markets, and mixed, where the firms seek product and market extensions.
Detailed explanation-3: -Conglomerate. A merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed.
Detailed explanation-4: -A conglomerate merger involves companies active in totally unrelated business activities or operating in different geographical locations. An airline company acquiring a newspaper is a good example of a conglomerate merger.