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Home Questions EPYQEGRYD5
Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:

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. 

 

Options:

1-c, 2-b, 3-a, 4-d

1-c, 2-d, 3-a, 4-b

1-b, 2-c, 3-a, 4-d

1-c, 2-a, 3-b, 4-b

Correct Answer:

1-c, 2-b, 3-a, 4-d

Explanation:

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. 

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