A merger involving a commercial bakery and a grocery retailer would be an example of a:

A. conglomerate
B. linear
C. vertical
D. horizontal



Answer :

Final answer:

A merger between a commercial bakery and a grocery retailer would exemplify a conglomerate merger, offering diversification and profit protection benefits.


Explanation:

Answer:

A merger involving a commercial bakery and a grocery retailer would be an example of a conglomerate merger. This type of merger occurs when a business's new activity is part of a different value chain, as seen in conglomerates like General Electric engaging in various industries.

Vertical mergers involve different steps of the same manufacturing process, while horizontal mergers involve competitors merging, such as Exxon and Mobil. A conglomerate merger provides diversification benefits for the corporations involved, enabling them to protect their profits through varied business holdings.


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