A candy company merging with a greeting cards company is a _____ merger.
A) vertical
B) conglomerate
C) product-extension
D) market-extension

Question

Quizplus · Accepted Answer

A candy company merging with a greeting cards company is a conglomerate merger. Conglomerate mergers are neither horizontal nor vertical. A conglomerate (a large firm that controls numerous other firms in diverse industries) may acquire a firm in a new product market or a firm in the same product market as one of its captive firms but in a different geographic market.

A Candy Company Merging with a Greeting Cards Company Is