Match the items of List – I with the items of List – II. List-IList-II (a) Merger (i) designed to make…
A merger is the combination of two firms to form a single firm (a-iii); a vertical merger combines a firm with one of its suppliers or customers (b-iv); a conglomerate…
Choose your answer
Match the items of List – I with the items of List – II.
| List-I | List-II |
|---|---|
| (a) Merger | (i) designed to make a company less vulnerable to a takeover. |
| (b) Vertical merger | (ii) a merger of companies in totally different industries. |
| (c) Conglomerate merger | (iii) the combination of two firms to form a single firm. |
| (d) Defensive merger | (iv) a merger between a firm and one of its suppliers or customers. |
Answer and explanation
Correct answer C
A merger is the combination of two firms to form a single firm (a-iii); a vertical merger combines a firm with one of its suppliers or customers (b-iv); a conglomerate merger combines companies in totally different industries (c-ii); and a defensive merger is designed to make a company less vulnerable to a takeover (d-i).
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UGC NET Management