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:

Behavioral Economists

Behavioral economists study how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

Brand Loyalty

The tendency of consumers to continuously purchase the same brand's products over competitors due to preferences, satisfaction, or perceived value.

Monopoly Power

The ability of a single entity to control a significant portion of the market and influence price or output levels.

Status Quo Bias

A cognitive bias that leads individuals to prefer things to remain the same or maintain their current state over pursuing change.