Question

Match the following examples with the best merger type (Note that each matched answer is used just once):

a) Horizontal merger
b) Vertical merger
c) Conglomerate merger
d) Product extension merger

Answer 1

The student's question concerns the matching of examples to the proper type of corporate merger: horizontal, vertical, or conglomerate, each with distinct characteristics and impact on competitive markets.

Step-by-step explanation:

The student is tasked with matching examples to the correct type of corporate merger. A horizontal merger occurs when two companies in the same industry at the same point of production merge. A vertical merger involves companies in different stages of production, such as a supplier merging with a distributor. A conglomerate merger consists of firms that own businesses producing unrelated products, aiming to diversify and protect profits.

Using this information, the matches for the provided examples would be made based on these definitions. Antitrust laws are also a key factor, as they regulate mergers to ensure that competitive markets are maintained.