Multiple Choice QuestionIf two companies that both make water valves for plumbing contractors merge, it would be an example of a ______ merger.Multiple choice question.verticalconglomeratehorizontallinear
Question
Multiple Choice QuestionIf two companies that both make water valves for plumbing contractors merge, it would be an example of a ______ merger.Multiple choice question.verticalconglomeratehorizontallinear
Solution
The correct answer is "horizontal". This is because a horizontal merger occurs when companies operating in the same or similar industry combine. In this case, both companies are making water valves for plumbing contractors, which means they are in the same industry.
Similar Questions
Multiple Choice QuestionA merger of two firms that sell similar products to the same customers is a(n) ______.Multiple choice question.vertical mergerconglomerate mergeracquisitionhorizontal merger
An accurate statement about a vertical merger is that Blank______.Multiple choice question.it is a combination of two firms producing the same products but selling them in different geographic marketsit is the combination of two firms that produce closely related products in the same geographic areait tends to stabilize supply and production and gives firms greater control over these aspectsit is always motivated by economies of scale in marketing, production, or sales
A Blank______ merger is the combination of two firms that produce one or more of the same or closely related products in the same geographic area.Multiple choice question.market extensionverticalhorizontalproduct extension
Multiple Choice QuestionThe result of two firms (usually corporations) combining to form one company is called a(n) Blank______.Multiple choice question.mergerS corporationacquisitionproprietorship
A conglomerate merger that involves the consolidation of two essentially unrelated firms is known as a Blank______ merger.Multiple choice question.horizontaldiversified activitymarket extensionvertical
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.