A Type of Horizontal Merger That Combines Two Firms That

question 103

Multiple Choice

A type of horizontal merger that combines two firms that sell the same products in different market areas is a ________.

• A) Product extension merger
• B) Market extension merger
• C) Vertical merger
• D) Conglomerate merger

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Definitions:

Receivership

The first form of external administration prescribed by the Corporations Act. Receivership involves a receiver, receiver–manager or controller being appointed by a court or by secured creditors in order to protect the security of those creditors.

Liquidation

The third form of external administration prescribed by the Corporations Act. The process whereby a company is dissolved, at which point the company ceases to be a legal entity.

Liquidator

An external administrator appointed to dissolve the company.