Question

Suppose a firm that makes appliances merges with a company that produces running shoes, and it later also buys a dairy. what is this combination called?

Answer 1

This combination is called CONGLOMERATE MERGER. A conglomerate merger is the unification between firms or companies that are involved in business activities that are no way related to each other. The two types of conglomerate merger are PURE AND MIXED. Pure conglomerate involves companies with nothing in similarity. Whereas for mixed conglomerate, it involves companies that are looking for product or market extensions.