Which of the Following Is a Result of Horizontal Integration

question 17

Multiple Choice

Which of the following is a result of horizontal integration in terms of Porter's five forces model?

• A) The industry structure becomes less consolidated.
• B) There is a reduction of excess capacity in the market.
• C) The industry structure becomes potentially less profitable.
• D) There is an increase in rivalry among existing firms.

---

Definitions:

Net Present Value

A financial measurement that calculates the value of a project or investment by discounting the expected future cash flows to their present value using a specific discount rate.

Tractor-Trailer

A vehicle configuration consisting of a front tractor unit coupled to a trailer carrying cargo.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding costs related to production.

Annual Cost Savings

The reduction in costs achieved during a year due to various savings measures or efficiencies.