A combination of two or more companies in which neither competes directly with the other and no buyer-seller relationship exists is known as a ____.
A) conglomerate merger
B) vertical merger
C) horizontal merger
D) takeover

Question

Quizplus · Accepted Answer

A conglomerate merger is a combination of two or more companies that are unrelated and do not compete with each other. This type of merger involves companies in different industries or sectors. There is no buyer-seller relationship in a conglomerate merger. In contrast, a horizontal merger involves companies in the same industry or sector, while a vertical merger involves companies in different stages of the same supply chain. A takeover involves one company acquiring another company by purchasing a controlling stake in its shares.

A Combination of Two or More Companies in Which Neither