GK
BUSINESS ECONOMICS
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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: -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 provides the merging companies with the advantage of diversification of business operations and target markets. As the merging companies operate in distinct industries and/or markets, the merged company is less vulnerable to declines in sales in one industry or market.
Detailed explanation-3: -The three main types of merger are horizontal mergers which increase market share, vertical mergers which exploit existing synergies and concentric mergers which expand the product offering.