When a company merges with another company to produce a related product in order to add the related product to the company's production,it results in which of the following types of conglomerate merger?

Question

Quizplus · Accepted Answer

A)Product extension exists when a firm merges with another firm producing a
related product.The purpose behind a product-extension merger is to enable the acquiring company to obtain the production of the related product and add it to the acquiring company's production of its current product.
B)Product extension exists when a firm merges with another firm producing a related product.The purpose behind a product-extension merger is to enable the acquiring company to obtain the production of the related product and add it to the acquiring company's production of its current product.

When a Company Merges with Another Company to Produce a Related