Trans Globe Airlines Is in Talks with Royal Blue Airlines,a

question 172

Multiple Choice

Trans Globe Airlines is in talks with Royal Blue Airlines,a financially troubled rival.The firms believe the merger will create a stronger company that can offer travelers more flights to a wider variety of destinations.This proposed merger is an example of a:

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

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Definitions:

Financing Activities

Transactions that involve changes in equity and long-term liabilities on the company's balance sheet, such as issuing shares or obtaining long-term loans.