When a firm undertakes a merger to improve its sources and supply of raw materials, this is an example of a ________.
A) financial merger
B) hostile takeover
C) divestiture
D) strategic merger

Question

Quizplus · Accepted Answer

A strategic merger is aimed at improving a firm's performance by expanding its sources and supply of raw materials. A financial merger involves combining two firms for financial gains, a hostile takeover is an aggressive acquisition of another company, and a divestiture is when a firm sells off a part of its business to focus on core operations.

When a Firm Undertakes a Merger to Improve Its Sources