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.

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Definitions:

Express Transactions

Express transactions involve rapid financial or goods exchanges, emphasizing speed and efficiency in the completion of the transaction.

Business Entity Assumption

An accounting principle that treats a business as separate from its owner or any other business.

Business Entities

Business entities refer to legally recognized organizations designed to provide goods or services.

Owners

Owners are individuals or entities that hold legal title to assets, businesses, or property.