Which of the Following Is True of Horizontal Mergers

question 45

Multiple Choice

Which of the following is true of horizontal mergers?

• A) They do not create an increase in market share.
• B) They result in an increase in concentration of the relevant market.
• C) The merging firms serve different markets.
• D) They are mergers between firms in unrelated businesses.

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Definitions:

Operating Cycle

The period of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Business Decision

A choice made by a business in pursuit of its objectives, often involving resource allocation.

Material

The raw inputs or supplies used in the manufacturing of goods or products.

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.