Comprehension

The questions are to be answered on the basis of what is stated or implied in the passage.Choose the most appropriate response that accurately and completely answer the question.
The term mergers and acquisitions (M&A) refers to the consolidation of companies or their major business assets through financial transactions between companies.A company may purchase and absorb another company outright,merge with it to create a new company,acquire some or all of its major assets, make a tender offer for its stock,or stage a hostile takeover.Mergers can be structured in a number of different ways, based on the relationship between the two companies involved in the deal. For instance conglomerate mergers involve firms of unrelated business activities. Congeneric merger involve two businesses that serve the same consumer base in different ways.Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service.A market extension merger takes place between two companies that deal in the same products but in separate markets.A product extension merger takes place between two business organizations that deal in products that are related to each other and operate in the same market.A vertical merger occurs when two or more firms, operating at different levels within an industry’s supply chain, merge operations.

Question: 1

A leading manufacturer of athletic shoes, merges with a soft drink firm is an example of

Updated On: Aug 4, 2024
  • Horizontal Merger
  • Vertical Merger
  • Conglomerate Merger
  • Congeneric Merger
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The Correct Option is C

Solution and Explanation

The correct option is (C): Conglomerate Merger
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Question: 2

An automobile company joining with a parts supplier would be an example of

Updated On: Aug 4, 2024
  • Horizontal Merger
  • Vertical Merger
  • Market Extension Merger
  • Product Extension Merger
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The Correct Option is B

Solution and Explanation

The correct option is (B):Vertical Merger .
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Question: 3

A merger between Coca-Cola and the Pepsi beverage division is

Updated On: Aug 4, 2024
  • Horizontal Merger
  • Vertical Merger
  • Market Extension Merger
  • Product Extension Merger
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The Correct Option is A

Solution and Explanation

The correct option is (A): Horizontal Merger
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Question: 4

The acquisition of a company in the manufacturing of product designs meant for handsets that are equipped with the Global System for Mobile Communications technology by another company in the manufacturing Bluetooth personal area network hardware systems and chips is

Updated On: Aug 4, 2024
  • Market Extension Merger
  • Product Extension Merger
  • Horizontal Merger
  • Vertical Merger
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The Correct Option is B

Solution and Explanation

The correct option is (B): Product Extension Merger
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Question: 5

An ice-cream manufacturer buying a wafer manufacturer is

Updated On: Aug 4, 2024
  • Conglomerate Merger
  • Congeneric Merger
  • Market Extension Merger
  • Horizontal Merger
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The Correct Option is B

Solution and Explanation

The correct option is (B): Congeneric Merger.
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