When two firms who do not participate in the same industries,for example a software company and a fast food restaurant company decide to merge,the result is called a ____________ merger.
A)vertical
B)horizontal
C)linear
D)conglomerate

Question

Quizplus · Accepted Answer

A conglomerate merger is a merger between companies that are involved in totally unrelated business activities. In this case, a software company and a fast food restaurant company do not participate in the same industry and are unrelated, making it a conglomerate merger. A vertical merger is between two firms in the same industry but at different stages in the production process, a horizontal merger is between two firms in the same industry and a linear merger is not a recognized type of merger.

When Two Firms Who Do Not Participate in the Same