BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
the result of merging companies that produce unrelated goods and services
A
horizontal merger
B
conglomerate
C
depreciation
D
multinational
E
vertical merger
Explanation: 

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.

There is 1 question to complete.