BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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monopoly.
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hostile takeover.
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merger.
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trading bloc.
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Detailed explanation-1: -A company merger occurs when two businesses with similar synergies decide that being one company together will yield more profits than being two separate entities.
Detailed explanation-2: -A merger takes place when two companies combine to form a new company. Companies merge to reduce competition, increase market share, introduce new products or services, improve operations, and, ultimately, drive more revenue.
Detailed explanation-3: -Successful merger: Exxon and Mobil Exxon Corp. and Mobil Corp.-the first and second largest oil producers in the United States-made headlines when they announced their merger in 1998. This type of merger is a classic example of a horizontal merger.
Detailed explanation-4: -Vertical mergers reduce competition and can provide the new single entity with a larger share of the market. The success of the merger is based on whether the combined entity has more value than each firm separately.