When a firm undertakes a merger in order to eliminate redundant functions or increase market share, this is an example of
A) friendly merger.
B) strategic merger.
C) a financial merger.
D) hostile takeover.

Question

Quizplus · Accepted Answer

This type of merger is intentionally planned in order to achieve certain strategic goals, such as eliminating redundancy or increasing market share. A friendly merger involves two companies agreeing to merge for mutual benefit, while a financial merger focuses on financial benefits such as tax savings. Hostile takeovers occur when one company acquires another company without the agreement of the target company's management.

When a Firm Undertakes a Merger in Order to Eliminate