A Horizontal Merger

question 89

Multiple Choice

A horizontal merger

• A)is a merger between firms in the same industry.
• B)results in a trust (for example, the Standard Oil Company).
• C)is a merger between firms at different stages of production of a good.
• D)was illegal in the United States until the Federal Trade Commission Act was passed by Congress in 1914.

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Definitions:

Forming

A manufacturing process that involves shaping material into a specific configuration.

Assembly

The process of putting together components or parts to build a finished product, often involving a combination of manual and automated techniques in manufacturing.

Predetermined Overhead Rate

An estimated overhead cost rate used in cost accounting to allocate expected indirect costs to specific products or job orders based on a specific activity base.

Machine-Hours

A measure of production time, where one machine-hour equals one hour of operation of a machine.