Question

_____ is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.

Answer 1

Answer:

The correct word for the blank space is: Conglomerate Merger.

Explanation:

A Conglomerate Merger is the acquisition of a company by another where the firms involved have their operations in different industries. This type of merger looks for market diversification since engaging activities with a company with different business imply dealing with new customers.

Answer 2

Answer: The answer is vertical merger

Explanation:

Merger is the coming together of two or more companies to form one new enterprises. The procedure involves the adoption of a resolution by the board of directors of the two companies in merger approving the merger. The merger comes into effect when the registrar of companies issue a certificate of merger to the company. When the merger comes into effect the firms becomes a single entity,and the other companies stop to exist. The new company will now take over the assets and the liabilities of the merged firms.

A vertical merger is a merger of a business that have related production and distribution activities but who may not compete directly with each othe. The aim of this kind of merger is to ensure that the quality of the product that they produced increased to the highest quality after the merger.It is also to ensure that the company can have a better access to vital information regarding the market at all times.. It is also to improve efficiency of their operations and to raise enough capital in order to take advantage of economies of scale.