When Two Firms Who Do Not Participate in the Same

question 39

Multiple Choice

When two firms who do not participate in the same industries,for example a software company and a fast food restaurant company decide to merge,the result is called a ____________ merger.

• A)vertical
• B)horizontal
• C)linear
• D)conglomerate

---

Definitions:

Discretionary Policy

Economic or fiscal policy based on judgment and decision-making in response to changing economic conditions, rather than set by predetermined rules.

National Saving

The total amount of savings generated within a country, including both private savings by households and public savings by the government.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage of the principal amount.

Discretionary Fiscal Policy

Economic strategies implemented by the government through changes in spending levels and tax rates to influence economic conditions.