Practicing Success
A merger between firms that are involved in totally unrelated business activities for e.g.: a shoe manufacturing firm merges with a dairy products manufacturer. Such type of mergers are known as _____. |
Conglomerate Horizontal merger Vertical merger Product extension |
Conglomerate |
Conglomerate: A merger between firms that are involved in totally unrelated business activities. There are two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve firms with nothing in common, while mixed conglomerate mergers involve firms that are looking for product extensions or market extensions. |