The acquisition by an electrical equipment manufacturer of a company that wholesales cloth teddy bears is an example of:

Question

Quizplus · Accepted Answer

This is an example of a conglomerate merger, where two companies in completely unrelated business activities merge. A vertical merger involves companies in the same industry but at different stages of production, a horizontal merger involves companies in the same industry and market, and an equity-balancing merger is not a standard term used in this context.

The Acquisition by an Electrical Equipment Manufacturer of a Company