Match the following:
| Type of Merger | Description of Merger |
| 1. Vertical merger | a. Takes place between two business organizations that deal in products that are related to each other and operate in the same market. |
| 2.Horizontal Merger | b. A business consolidation that occurs between firms which operate in the same space, often as competitors offering the same goods or service |
| 3. Product Extension Merger | c. A merger between two companies producing different goods or services for one specific finished product |
| 4. Conglomerate merger | d. A merger between firms that are involved in totally unrelated business activities. |
Answer & explanation
Correct answer: option 1
Conglomerate: A merger between firms that are involved in totally unrelated business activities.
Horizontal merger: A merger occurring between companies in the same industry. Horizontal merger is a business consolidation that occurs between firms which operate in the same space, often as competitors offering the same goods or service.
Product extension mergers: A product extension merger takes place between two business organizations that deal in products that are related to each other and operate in the same market.
Vertical merger : A merger between two companies producing different goods or services for one specific finished product. A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain, merge operations.