Your 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 that has similar programs in the other state. The school you're merging with is a small commuter school with no dorms. 98% of its students are not only instate, but from the city the school is located in. This merger would be best described as a:
A) vertical merger.
B) geographic market extension merger.
C) product market extension merger.
D) horizontal extension merger.
E) conglomerate merger.

Question

Quizplus · Accepted Answer

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).

Your School Decides to Expand and Open a New Campus