Last month, Keyser Design acquired all of the assets and liabilities of Tenor Machine Works. The combined firm is known as Keyser Design. Tenor Machine Works no longer exists as a separate entity. This acquisition is best described as a:

Merger involves the combination of two or more companies into a single company. It is business strategy whereby two or more companies comes together to form a single company in order to strengthen their financial and operational ability while also expanding into new segments and gaining market share.

Here, two or more business entities combines to form a single and larger entity aimed at improving efficiencies of scales and productivity thereby leading to higher profit margins. The combined business entities in a merger no longer work as a separate entity but rather becomes one.

adioabiola adioabiola · Answer 2 · 2020-04-20T05:32:01+02:00

Answer:

Merger

Explanation:

Merger can be defined as the agreement between two existing firms to join together or unite to form a new firm.

The agreement is done in order to widen or expand the reach of the firm. The two firms involved in merger joins together voluntarily without anyone compelling or forcing the other to join.

Types of merger

1. Horizontal merger: This is an agreement between two firms who are in direct competition to join together.

2. Vertical merger: This occurs between firms along the same supply chain.

3. Market-extension merger: This is agreement between two firms in different market selling similar product to merge.

4. Product-extension merger: It is also known as congeneric merger. An agreement between firms in the same market selling different but related product to merge.

5. Conglomerate merger: This is a type of merger in which two firms producing unrelated product merge.