Answer:
(a) horizontal - This is a merger that occurs between companies operating in the same industry. This is typically a consolidation between two or more competitors offering the same products or services. Such mergers are common in industries with fewer firms, and the goal is to create a larger business with greater market share and economies of scale.
(b) vertical - This is a merger that occurs when two companies operating at different levels within the same industry combine their operations to produce one product. These mergers are usually done to create synergies between companies and reduce costs
(c) congeneric - This is a merger combining of two or more companies that operate in the same market. This is achieved when a new product from one company is combined with an existing product in the other company. When two companies become one under a congeneric merger, they are able to gain a larger market share.
(d) conglomerate - This is a merger between two or more companies with unrelated business activities. Companies will only merge this way if it increases shareholders wealth.
Explanation:
(a) horizontal - This is a merger that occurs between companies operating in the same industry. This is typically a consolidation between two or more competitors offering the same products or services. Such mergers are common in industries with fewer firms, and the goal is to create a larger business with greater market share and economies of scale.
(b) vertical - This is a merger that occurs when two companies operating at different levels within the same industry combine their operations to produce one product. These mergers are usually done to create synergies between companies and reduce costs
(c) congeneric - This is a merger combining of two or more companies that operate in the same market. This is achieved when a new product from one company is combined with an existing product in the other company. When two companies become one under a congeneric merger, they are able to gain a larger market share.
(d) conglomerate - This is a merger between two or more companies with unrelated business activities. Companies will only merge this way if it increases shareholders wealth.
