Which of the Following Statements Is True About Horizontal Mergers

question 8

Multiple Choice

Which of the following statements is true about horizontal mergers?

• 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 postition 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:

Hybridization

The concept in molecular chemistry and physics that describes the mixing of atomic orbitals to form new hybrid orbitals suitable for the pairing of electrons to form chemical bonds.

Indicated Atom

An atom within a molecule highlighted or specified for discussion or analysis.

Uracil

A nitrogen-containing base (a pyrimidine) found in RNA, where it pairs with adenine and replaces thymine during DNA transcription.

Molecular Shape

The three-dimensional arrangement of atoms within a molecule, determined by various physical and chemical factors, impacting chemical reactivity and interactions.