2. Types of mergers 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 B cease to exist, and company B continues to conduct business under its original name is called a In contrast, a business transaction in which companies A and B combine, both organizations are dissolved, and a new organization is created is called 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 decrease during Mergers often are classified according to the merger's participants and their lines of business. Identify each of the following four types of mergers: Motive for Merger Description A merger between two retail giants producing the same type of clothing A merger between firms that are in the same industry but in different areas of that industry and lack a customer-supplier relationship A merger between firms with totally different industries A merger between the manufacturer and its supplier of raw materials General Electric (GE) has acquired companies in several industries, such as aviation, financial services, enterprise solutions, transportation, health care, appliances, and consumer goods. GE entered into some of these industries by acquiring established or promising players in the sector. These mergers would be best described as: OOOO Conglomerate mergers Vertical mergers Congeneric merger Horizontal mergers