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.

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Definitions:

Commitment

The state or quality of being dedicated to a cause, activity, or job; wholeheartedly dedicated.

Compliance

The act of conforming to or following rules, standards, or instructions set by an authority.

Influence Over Subordinates

The capacity of leaders or managers to affect the behavior, development, and performance of their junior staff.

Influence Over Superiors

The capacity to affect the decisions, actions, or beliefs of those in higher positions of authority.