Question 33
Business CombinationsThe merger of a textile mill, a cement company and a tannery is referred to as
- A.conglomerate merger
- B.horizontal merger
- C.lateral merger
- D.vertical merger
Show the answer and explanation
Answer: A (conglomerate merger)
Explanation
A merger of firms in unrelated lines of business is a conglomerate merger. A vertical merger joins firms at different stages of the same product.