Mergers Involve the Acquisition by One Firm of Another That

question 43

Multiple Choice

mergers involve the acquisition by one firm of another that produces products or services that are not directly related to those of the acquiring firm.

• A) Conglomerate
• B) Forward vertical
• C) Backward vertical
• D) Horizontal

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Definitions:

Organic Structure

A flexible, decentralized organizational design that emphasizes informal networks of communication and empowers employees to take decisions.

Growth

The process of increasing in size, value, or importance.

Span of Control

Refers to the number of subordinates or tasks directly supervised or overseen by one manager or leader.

Centralization

The concentration of control, decision-making, or authority in a particular location or among a specific group of individuals.