Which of the following is an example of a merger?

A) David's Dogs was a hot dog stand in downtown Detroit. Tim's Diner opened a restaurant on David's corner. David's Dogs did such a great business that Tim's sales suffered. So Tim purchased David's Dogs and brought the hot dog sales inside his diner, where David now cooks.
B) The new Ink Dot Tattoos was putting a dent in business at Tate's Tats, right down the street. Tate's, which had been successful for a long time and had capital built up, bought out Ink Dot and promptly closed it, keeping the market share for itself.
C) Rita's Clothiers, in San Diego, was a successful business for plus-sized women for 25 years. When Rita wanted to retire, she sold the business to Big and Beautiful, a national plus-sized store without a San Diego presence. Big and Beautiful put its own name on Rita's shop and continued to run the store.
D) Pixie's Pictures photography studio featured Pixie as a wedding photographer. Paul's Portraits was a straightforward portrait photograph shop. Pixie and Paul got married and created P and P's Pix, a full-service portrait and wedding photography shop.
E) Munchies, a major manufacturer of snack foods sold all around the country, was not selling its pretzels well in the Southwest. Research informed the company that Pete's Pretzel Stix had a strong Southwest presence. Munchies quickly bought up a majority of Pete's stock. Pete's Pretzel Stix continued to be a popular product in the area, but now were made and sold by Munchies.

Answer: D
Explanation: D) When Pixie's Pictures and Paul's Portraits joined together, they created a new company, P and P's Pix, that offered two services instead of the one service each that the original companies had offered. Two companies joining to form another company is the definition of a merger.

Business

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