A large computer hardware manufacturer
purchased a company that develops computer-based software training, among other types of
computer-based training. The computer manufacturer has been looking for just such a company that could open up opportunities for them to
diversity and grow both businesses. This strategic decision bringing the two companies together is called a

Multiple Choice

conglomerate merger

vertical merger

horizontal merger

Please help me!!!

Question

02-09-2021
Business

Answered

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A large computer hardware manufacturer
purchased a company that develops computer-based software training, among other types of
computer-based training. The computer manufacturer has been looking for just such a company that could open up opportunities for them to
diversity and grow both businesses. This strategic decision bringing the two companies together is called a

Multiple Choice

conglomerate merger

vertical merger

horizontal merger

Please help me!!!

Sagot :

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ewomazinoade ewomazinoade · Answer 1 · 2021-09-14T18:19:47-04:00

This strategic decision bringing the two companies together is a vertical merger

A merger is when two firms come together and one of the firms cease to exist.

Types of merger

1. Horizontal merger : is a type of merger that occurs between two companies that operate in the same industry. The companies are usually competitors.

An example of an horizontal merger is the merger of Mobil and Exxon in 1999.

2. Vertical merger : this is the merger of firms in the same production line. For example, a bakery purchases a pastry distributing company or when a large computer hardware manufacturer purchased a company that develops computer-based software training

3. Conglomerate merger : This occurs when the products of the merging firms were not related in any manner before the merger.

To learn more about mergers, please check: https://brainly.com/question/1086715?referrer=searchResults

Sagot :

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