Higher Business Management – Understanding Business Practice Test

Which of the following is an example of a merger?

Disney merged with Pixar Santander took over Abbey National Google bought YouTube A bank acquiring a competitor in a different country

Correct Answer:

Disney merged with Pixar

Explanation:

A merger happens when two separate companies join together to operate as one entity, pooling resources and leadership under a single umbrella. The example Disney and Pixar illustrate this idea by presenting two brands that come together to form a single, unified business entity and strategy. This fits the concept of a merger because it emphasizes the combining of two firms into one operating group, rather than one company merely taking over another. The other scenarios describe acquisitions or takeovers—where one company buys or absorbs another—rather than two firms merging into a new shared entity.

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