In the Past,the ABC's Markets and XYZ's Groceries Have Been

question 152

True/False

In the past,the ABC's Markets and XYZ's Groceries have been fierce competitors in the grocery market.However,they recently issued a joint announcement stating their decision to merge.The announcement justified the proposed merger by claiming that the resulting firm would have more financial resources,which would enable it to expand services and broaden offerings to consumers.This proposed merger is an example of a horizontal merger.

---

Definitions:

For-Profit Organizations

Entities that operate primarily to generate financial profit for their owners or shareholders.

HMOs

Health Maintenance Organizations, a type of health insurance plan that limits coverage to care from doctors who work for or contract with the HMO.

PPOs

Preferred Provider Organizations, a type of health plan that contracts with medical providers to create a network of preferred doctors and hospitals for its members.

DRG Payment System

The Diagnosis-Related Group (DRG) payment system is a method used by Medicare and some other insurance programs to categorize hospitalization costs and determine how much to pay for a patient's hospital stay.