A large nation-wide bank’s acquisition of a major investment advisory firm would be an example of a: a. market extension merger. b. conglomerate merger. c. product extension merger. d. horizontal merger.
A large nation-wide bank’s acquisition of a major investment advisory firm would be an example of a: a. market extension merger. b. conglomerate merger. c. product extension merger. d. horizontal merger.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A large nation-wide bank’s acquisition of a major investment advisory firm would be an example of a:
|
a. |
market extension merger. |
|
b. |
conglomerate merger. |
| c. |
product extension merger. |
|
d. |
horizontal merger. |
Expert Solution
Step 1
Lets understand the basics.
Market extension merger is a merger in which one entity taget another entity in the same market of different country.
Conglomerate merger is a merger which happens between altogather different industry and business industry.
Product extention merger is a merger which focus on same industry but working in different product.
Horizontal merger is a merger of the small entities of the business to get benefit of synergy. It is made to increase share of entity in the business.
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