Distinguish Between a Vertical Merger, a Horizontal Merger, and a Conglomerate

question 128

Essay

Distinguish between a vertical merger, a horizontal merger, and a conglomerate merger. Provide an example of each. Which is likely to receive the closest government scrutiny?

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Definitions:

Net Cash Flow

Net cash flow is the amount of cash generated or lost over a specific period, resulting from a company's operating, investing, and financing activities.

Net Income

The total profit of a company after all revenues, cost of goods sold, operating expenses, and taxes have been subtracted.

Cash Payback Period

The expected period of time that will elapse between the date of a capital expenditure and the complete recovery in cash (or equivalent) of the amount invested.

Fixed Asset

A durable, physical asset that a company possesses and utilizes in its activities to produce revenue over an extended period.