A Horizontal Merger Occurs When

question 68

Multiple Choice

A horizontal merger occurs when:

• A) two or more firms agree to charge standard prices for their goods
• B) two competitor firms become one firm
• C) common stock is converted to preferred stock
• D) sole proprietors decide to incorporate
• E) sales and manufacturing departments are combined

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Definitions:

Small Businesses

Enterprises that are privately owned and operated, with smaller revenue and fewer employees compared to larger companies.

All Firms

A term that encompasses all business enterprises, regardless of size, industry, or structure, operating within an economy.

Small Business Administration

A U.S. governmental agency that provides support to entrepreneurs and small businesses through loans, grants, and counseling.

Conventional Commercial Financing

Traditional forms of business funding provided by banks and financial institutions, including loans and lines of credit.