CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipEnterprise Growth Strategies3 Marks
Question
Explain in detail the types of mergers.
✓
Answer
The various types of mergers are as follows:
Conglomerate merger: In this type of merger, firms involved in totally unrelated businesses, come together.
Horizontal merger: This merger is between companies in the same industry, competing with one another.
Market extension merger: This type of merger takes place between companies that deal in the same products but in separate markets.
Product extension merger: A product extension merger takes place between two business organisations that deals in products that are related to each other and operates in the same market.
Vertical merger: A merger between two companies producing different goods or services for one specific finished product is termed as a vertical merger. It is between firms operating at different levels within an industry.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.