Which external growth strategy involves two or more corporations joining in a stock exchange and from which only one corporation survives?
A) merger
B) strategic alliance
C) diversification
D) acquisition
E) concentration

Question

Quizplus · Accepted Answer

A merger involves two or more corporations joining together to form a new corporation. In some cases, the merger may result in the disappearance of one of the original corporations, as the surviving corporation absorbs the other(s). This can happen, for example, if one of the corporations is struggling financially, or if the two corporations have similar business models and are competing for the same market share.

Which External Growth Strategy Involves Two or More Corporations Joining