Which of the Following Is a Type of Merger in Which

question 74

Multiple Choice

Which of the following is a type of merger in which two firms that sell the same products in different market areas are combined?

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

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Definitions:

Legal Capital

The minimum amount of capital that a company is required to maintain as per law, to protect creditors and ensure that the company remains solvent.

Corporate Form

A legal structure of a business organization that is recognized as a separate legal entity, often characterized by limited liability for its owners and issuance of stocks.

Sole Proprietorship

A business structure where a single individual both owns and runs the company, often leading to simpler administrative requirements but unlimited personal liability.

Government Regulations

Laws and rules established by governmental agencies that businesses must follow to ensure compliance with standards and protections for consumers, employees, and the environment.