1. Types of mergers AaAa Businesses have two basic strategies for achieving growth: (1) Grow internally by acquiring individual assets, generating additional product, and increasing the firm's sales or (2) grow externally by acquiring or combining with other businesses. A business transaction in which company A and company B combine, all entities except company A cease to exist, and company A continues to conduct business under its original name is called a business transaction in which companies A and B combine, both organizations are dissolved, and a new organization is created is called a . In contrast, a Not surprisingly, rates of both internal and external growth tend to be related to the level of activity in the economy. Merger activity tends to increase during Mergers often are classified according to the merger's participants and their lines of business. Identify each of the following three types of mergers: Description Motive for Merger A merger between two firms that produce the same type of good or service A merger between an electrical appliance company and a personal hygiene company| A merger between a firm and one of its customers or suppliers