Which of the Following Is an Example of a Horizontal

question 197

Multiple Choice

Which of the following is an example of a horizontal merger?

• A) The purchase of a catering firm by Delta Airlines
• B) The purchase of Marathon Oil Company by U.S. Steel
• C) The purchase of Kentucky Fried Chicken by PepsiCo
• D) The purchase of Fred Meyer grocery store chain by the Kroger supermarket chain
• E) The purchase of Mobil Oil by Exxon

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Definitions:

Operating Activities

Activities that relate directly to the business's primary operations, including cash receipts from sales of goods and services and cash payments for expenses.

Investing Activities

Financial actions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Net Change in Cash

The total increase or decrease in a company's cash and cash equivalents over a specified period, reflecting cash inflows and outflows.

Conversion of Bonds

The process of exchanging bond securities for a predetermined number of shares of the issuing company's stock.