If there are no vertical, horizontal, product extension, or market extension links between firms, the FTC defines the merger or acquisition activity between firms as a ________ merger.
A) conglomerate
B) vertical
C) horizontal
D) product extension

Question

Quizplus · Accepted Answer

A conglomerate merger refers to a merger or acquisition between firms that operate in different industries or have no significant overlap in their products or services. Since there are no vertical, horizontal, product extension or market extension links between firms in this case, it aligns with the definition of a conglomerate merger provided by the FTC.

If There Are No Vertical, Horizontal, Product Extension, or Market