Multiple choice

Match the following two lists of statements:

 
List - I
List - II
(a) When one company purchases another one.
(i) Conglomeration merger
(b) Merger between two companies having no common business areas.
(ii) Consolidation merger
(c) Merger between two companies that sell the same products in different markets.
(iii) Purchase merger
(d) Two companies are bought and combined under new entity.
(iv) Market extension merger

  1. (a)-(i), (b)-(ii), (c)-(iii), (d)-(iv)

  2. (a)-(ii), (b)-(iii), (c)-(i), (d)-(iv)

  3. (a)-(iii), (b)-(i), (c)-(iv), (d)-(ii)

  4. (a)-(iii), (b)-(iv), (c)-(i), (d)-(ii)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Matching: (a) Purchase merger is when one company buys another (iii). (b) Conglomeration merger combines unrelated businesses with no common areas (i). (c) Market extension merger sells same products in different geographical markets (iv). (d) Consolidation merger creates a new entity from two companies (ii).

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