Question

Hardee's and Carl's Jr. are fast food restaurants. Hardee's operates in the Midwest and Carl's Jr. operates on the West Coast. The two companies decide to merge. Is there a strong chance that the government will block this merger?

Answer 1

Answer:No, the chances that the government will block it is slim

Step-by-step explanation:

The two restaurants decided to MERGE. MERGING in business means that there is incorporation of two or more companies together to form a single entity in order to achieve further efficiencies and productivities.

There are three (3) main types of merging and they are: HORRIZONTAL MERGING( this increases market share), VERTICAL MERGING(this exploit existing synergies) and finally, the CONCENTRIC MERGING(this expand productivities).

With the two restaurants, it might be because of the the three(3) types of merges.

The government will NOT block the merging because merging because of MARKET EXTENSION does not receive much scrutiny from the government.