ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPETITION AND MARKET STRUCTURES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A merger between for or more companies producing or marketing different/unrelated products is referred as a(n) ____
A
conglomerate.
B
vertical merger.
C
corporation.
D
horizontal merger.
Explanation: 

Detailed explanation-1: -Conglomerate. This is a merger between two or more companies engaged in unrelated business activities. The firms may operate in different industries or in different geographical regions. A pure conglomerate involves two firms that have nothing in common.

Detailed explanation-2: -A conglomerate merger is a merger between firms that are involved in totally unrelated business activities. These mergers typically occur between firms within different industries or firms located in different geographical locations. There are two types of conglomerate mergers: pure and mixed.

Detailed explanation-3: -A conglomerate merger is a merger between companies that are totally unrelated. There are two types of a conglomerate merger: pure and mixed. A pure conglomerate merger involves companies that are totally unrelated and that operate in distinct markets.

Detailed explanation-4: -Key Takeaways A conglomerate is a corporation made up of several different, independent businesses. In a conglomerate, one company owns a controlling stake in smaller companies that each conduct business operations separately.

Detailed explanation-5: -Walt Disney Company & American Broadcasting Company merger-this is often cited as a prime example of a conglomerate merger.

There is 1 question to complete.