When Two Companies in Completely Unrelated Industries Agree to Become

question 313

Multiple Choice

When two companies in completely unrelated industries agree to become one firm, the result is called a

• A) vertical merger.
• B) joint venture.
• C) conglomerate merger.
• D) horizontal merger.

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Definitions:

Price Supports

Government interventions to maintain the market price of a commodity or product at a certain minimum level to protect producers.

Environmental Pollution

The contamination of the natural environment by harmful substances or energies.

Marginal Land

Land that yields minimal profit from agricultural or another use, and its cultivation is often not considered worth the effort under normal circumstances.

Import Quotas

Limits set by governments on the quantity of a specific good that can be imported into a country within a given timeframe.