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QUESTION

Four economic classifications of mergers are: (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric.

Four economic classifications of mergers are:

(1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric.

Explain the significance of these terms in merger analysis with regard to (a) the likelihood of governmental intervention and (b) possibilities for operating synergy.

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