Status Investment Bank Inc. is considering acquiring a fifty percent stake in a company that manages mutual funds. This will probably be a:
A)horizontal merger.
B)consolidation merger.
C)conglomerate merger.
D)congeneric merger.

Question

Quizplus · Accepted Answer

A congeneric merger involves companies in the same general industry but having no mutual buyer/seller relationship, such as a bank acquiring a stake in a mutual fund management company. This type of merger expands the acquiring company's range of services or product lines.