Which of the Following Is a Disadvantage of a Horizontal

question 82

Multiple Choice

Which of the following is a disadvantage of a horizontal integration corporate strategy?

• A) It increases competitive intensity within an industry.
• B) It increases the potential for legal repercussions.
• C) It increases the costs associated with increasing value.
• D) It increases the threat of new entrants in an industry.

---

Definitions:

Trading Securities

Financial instruments that are bought and sold for the purpose of generating profits on short-term fluctuations in price.

Held-To-Maturity

Held-to-maturity describes investment assets that a firm plans and is capable of retaining until they reach their due date.

Security Categories

Security categories classify financial instruments based on their characteristics, such as equities, debts, derivatives, or hybrid instruments.

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, taking into account factors such as depreciation, amortization, and impairment.