For Which Pair of Firms Would a Merger Be Horizontal

question 38

Multiple Choice

For which pair of firms would a merger be horizontal?

• A) Avis Car Rentals and United Airlines
• B) Nike and Starbucks
• C) Barnes and Noble and Wordsworth Booksellers
• D) US Steel and Boeing

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Definitions:

Market Value

The present rate at which a service or asset is available for sale or purchase in the open market.

Liquid Market

A market with a high level of trading activity, where assets can be bought or sold quickly without causing a significant change in their price.

Investment Banks

Financial institutions that assist individuals, corporations, and governments in raising capital by underwriting and acting as the agent in the issuance of securities.

Commercial Banks

Financial institutions that provide loans, accept deposits, and offer basic financial products like savings accounts to the public.