Fields Tech School decides to expand and open a new campus in another state.Rather than acquiring land and building new buildings,the school board decides to merge with an existing school,Fennelstate,which has similar programs in the other state.Fennelstate is a small commuter school with the majority of the students from the same state.The merger between Fields Tech School and Fennelstate is best described as a ______.
A) vertical merger
B) geographic extension merger
C) product extension merger
D) horizontal merger
E) freeze-out merger

Question

Quizplus · Accepted Answer

The merger between Fields Tech School and Fennelstate is best described as a market extension merger. A market extension merger describes an acquisition in which the acquiring company extends its markets. This market extension may be either in new products (product extension) or in new areas (geographic extension). As Fields Tech School extended its market to new areas, this merger would be best described as a market extension merger.

Fields Tech School Decides to Expand and Open a New