An Acquisition of a Firm in a Highly Related Industry

question 145

True/False

An acquisition of a firm in a highly related industry is referred to as a horizontal acquisition.

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Definitions:

Liability

The state of being responsible for something, especially by law.

Duty of Loyalty

A legal obligation requiring directors, officers, and agents of a corporation to act in the best interest of the corporation.

Duty of Care

A legal obligation requiring individuals to exercise a reasonable level of care while performing actions that could foreseeably harm others.

Business Location

The physical place where a company is situated or operates from, including offices, retail stores, or manufacturing facilities.