Which of the Following Statements About Horizontal Mergers Is True

question 15

Multiple Choice

Which of the following statements about horizontal mergers is true?

• A) Horizontal mergers enable companies to achieve economies of scale.
• B) Horizontal mergers result in the fragmentation of the industry.
• C) The horizontal merger strategy has been very successful in businesses with zero cases of failure.
• D) Companies that establish a network of distributor outlets to obtain the advantages of a low-cost position are known as horizontal mergers.
• E) Companies that adopt the strategy of centralization to gain control over all business units are known as horizontal mergers.

Understand the basic concepts of migration patterns, including emigration and immigration.

Grasp the stages of the demographic transition theory and how economic growth affects mortality and fertility rates.

Recognize the importance of replacement level fertility in maintaining population stability.

Comprehend the critiques and limitations of the demographic transition theory.

---

Definitions:

Date of Declaration

The date on which a company's board of directors announces a dividend payment to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall market capitalization remains unchanged.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing company.

Retained Earnings

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to its shareholders as dividends.