When Two Companies in Completely Unrelated Industries Agree to Become

question 242

Multiple Choice

When two companies in completely unrelated industries agree to become one firm,the result is called a:

• A)Vertical merger.
• B)Joint venture.
• C)Conglomerate merger.
• D)Horizontal merger.

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Definitions:

Losses

The negative financial result from business activities when costs exceed revenues.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Supply

The total amount of a product or service that is available to consumers.

Rents

Payments made for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount needed to keep a factor of production in its current use.