Suppose that General Motors has made an offer to acquire General Mills. Ignoring potential antitrust problems, this merger would be classified as a:
A) monopolistic merger.
B) horizontal merger.
C) vertical merger.
D) conglomerate merger.

Question

Quizplus · Accepted Answer

This merger would be classified as a conglomerate merger because it involves two companies that operate in completely different industries—General Motors in automotive and General Mills in food production.

Suppose That General Motors Has Made an Offer to Acquire