Lesson 15 Glossary
Merger
The joining together of two firms or companies to operate more effectively as one.
Acquisition
The purchase of controlling interests in one company by another.
Horizontal integration
The joining together of two firms that produce the same product or service to operate as one firm.
Holding company
An enterprise that holds shares in other producing companies.
Vertical integration
The merging of two firms involved in different stages of the production process of a good or service.
Corporate alliance
A group of companies that agree to operate as a single company while retaining separate ownership.