Suppose that General Motors has made an offer to acquire General Mills.Ignoring potential antitrust problems, this merger would be classiﬁed as a:
A)monopolistic merger.
B)horizontal merger.
C)vertical merger.
D)conglomerate merger.
E)None of the above.

Question

Quizplus · Accepted Answer

This merger would be classified as a conglomerate merger because it involves two companies that operate in completely different industries—General Motors in automotive and General Mills in food processing. Conglomerate mergers combine firms with unrelated business activities.

Suppose That General Motors Has Made an Offer to Acquire