Question

United Airlines' purchase of Continental Airlines combines the resources and capabilities of both firms to create the world's largest airline. The newly formed company is an example of a _____________.

Answer 1

The correct answer is: Merger

Step-by-step explanation:

To begin with, in the business world, the name of ''merger'' is given to refer to the situation where two or more differents companies decide to unite their assets, equity and liabilities in order to create an unique enterprise combined by both and to work in one common activity. Moreover, this concept is an aspect of strategic management that allows companies to grow their market position and to establish better conditions for their operations.