When Two Companies in the Same Industry Agree to Become

question 236

Multiple Choice

When two companies in the same industry agree to become one firm,the result is called a:

• A)Vertical merger.
• B)Joint venture.
• C)Monopoly.
• D)Horizontal merger.

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Definitions:

Foreign Currency Approach

Relates to the strategy for evaluating investments by considering the impact of foreign exchange fluctuations on investment returns.

Swedish Krona

The official currency of Sweden, which is divided into 100 öre and is denoted by the symbol SEK.

Absolute Purchasing Power Parity

The theory that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

Exchange Rate

The price of one country's currency in terms of another currency.