When two firms in unrelated businesses combine this is referred to as?
A)Synergistic merger
B)Horizontal merger
C)Vertical merger
D)Conglomerate merger

Question

Quizplus · Accepted Answer

When two firms in unrelated businesses combine, it is known as a conglomerate merger. This can occur when a company wants to diversify its business and enter into a new industry or when it wants to expand its operations into different regions or countries. Unlike horizontal and vertical mergers, which involve companies in a similar industry or supply chain, conglomerate mergers involve companies that do not have any direct connection in terms of products, services or production processes.

When Two Firms in Unrelated Businesses Combine This Is Referred