A merger of several firms operating in different industries-for example, a trucking company, a fast-food chain, and a brokerage house-is called
A) an integrated merger.
B) a conglomerate merger.
C) a vertical merger.
D) a horizontal merger.

Question

Quizplus · Accepted Answer

A conglomerate merger refers to a merger of firms that operate in different industries or have different business activities. It is different from a vertical merger that involves firms in the same industry but at different stages of production or distribution. A horizontal merger involves firms in the same industry and at the same stage of production or distribution. An integrated merger involves firms in the same industry and at different stages of production or distribution, but it is a less commonly used term compared to vertical or horizontal mergers.

A Merger of Several Firms Operating in Different Industries-For Example