Which type of merge is called a

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Problem 1: Etco Energy and Baltic Energy have decided to merge. Both companies provide similar products and services. This type of merge is called a :

a. Conglomerate

b. Diagonal Merger

c. Vertical Merger d. Horizontal merger

Problem 2: When firms that are competitor's merge, it is called __________ merger.

a. Horizontal

b. conglomerate

c. vertical

d. None of these

Problem 3: The Hubris hypothesis suggest that

a. Mangers seek to acquire firms for operating and financial synergies.

b. The pride and ego of management is one of the key reasons why firms refrain from M&A activity.

c. Managers seek to acquire firms for economic gain

d. Managers seek to acquire firms for their own personal motives and that the pure economic gains to the acquiring firm are not the sole motivation or even the primary motivation in the acquisition.

Reference no: EM132984932

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