Question

What is the definition of class merger? Class expansion? Give real life examples of each

Answer 1

Class merger as the name is suggesting itself that it is consisting of some unifying nature. It means that two entities are merged or combined in order to form a bigger and consolidated entity. This merger may be of entities of same characteristics.

We hear the news of mergers of banks. Few banks can be merged and a larger bank can be form through governmental orders. It can be a suitable example of class merger. Merger tends to form a stronger new entity with new characteristics.

Proper parameters must be checked before merging. If this is not done and any kind of reluctance exists among merging entities then it may also lead to destabilisation. Class expansion; as the name is suggesting itself that it relates to spreading of services.

Acquisition of new resources remains an essential part of this process. Suppose there is a company which creates telecommunication services. If that company decides to enter in a new business of car manufacturing then it will be said that company is expanding it's horizon.

It is being done to earn more profit. Class expansion in different different field reduces risks of several types. It also strengthens any institution/group at various levels. It helps in increasing competency level.