A corporation can grow internally by expanding its operations both globally and domestically,
or it can grow externally through mergers, acquisitions, and strategic alliances. A
merger is a transaction involving two or more corporations in which stock is exchanged but
in which only one corporation survives. Mergers usually occur between firms of somewhat
similar size and are usually “friendly.” The resulting firm is likely to have a name derived from
its composite firms. One example is the merging of Allied Corporation and Signal Companies