What Type of Merger Is the Combination of Two or More

question 41

Multiple Choice

What type of merger is the combination of two or more firms in unrelated industries?

• A) a conglomerate merger
• B) a horizontal merger
• C) a vertical merger
• D) an upward merger

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Definitions:

Present Value Factors

Numeric factors used in financial calculations to determine the present value of a future amount by accounting for time value of money.

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Executory Costs

Expenses related to ongoing maintenance and administration of a lease that are neither fixed nor included in the lease payments.

Annual Payments

Yearly amounts paid or received over the term of a financial instrument or agreement.