Question

Three types of corporate mergers are:

Select one:
a. Economic, geographic, and financial.
b. Vertical, horizontal, and conglomerate.
c. Flexible, differentiated, and conditional.
d. Explicit, implicit, and intrinsic.

Answer 1

b. Vertical, horizontal, and conglomerate.

Corporate mergers come in three types: vertical, horizontal, and conglomerate, each with distinct strategies and purposes for combining businesses.

Step-by-step explanation:

The three types of corporate mergers are vertical, horizontal, and conglomerate. A horizontal merger occurs when firms that produce the same kind of product combine, often to grow larger or become more efficient.

A vertical merger involves firms at different stages of production joining together to streamline processes and protect against the loss of suppliers.

Lastly, a conglomerate merger includes a firm that owns multiple businesses making unrelated products, allowing for diversification to protect profits.