If Microsoft Merged with the Coca-Cola Company,this Would Be an Example

question 23

Multiple Choice

If Microsoft merged with the Coca-Cola Company,this would be an example of a ________ merger.

• A)conglomerate
• B)vertical
• C)horizontal
• D)diagonal

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Definitions:

System I Thinking

A term from dual-process theory referring to fast, automatic, emotional, and subconscious thought processes.

Utility Theory

A theory in economics and finance that describes how individuals choose among different options or actions based on their expected happiness or satisfaction.

Framing

The way a decision is phrased or the way options are described. Seemingly peripheral aspects of the framing can influence decisions by changing the point of reference.

Double-Or-Nothing

A gamble or bet in which the stakes are either doubled or lost entirely.