Which One of the Following Types of Mergers Is Most

question 50

Multiple Choice

Which one of the following types of mergers is most likely to lead to diversification benefits?

• A) A horizontal merger
• B) A vertical merger
• C) A tax-free exchange
• D) A conglomerate merger

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Definitions:

Express Contract

A contract in which all the terms are clearly set forth in either written or spoken words.

Bilateral Contract

An agreement in which both parties make promises to perform certain acts or refrain from performing certain acts.

Plain-Meaning Rule

A rule of interpretation which states that words in a contract should be given their ordinary meaning.

Unambiguous

Clear and precise with only one possible interpretation or meaning.