Which of the Following Statements Is True About Horizontal Mergers

question 8

Multiple Choice

Which of the following statements is true about horizontal mergers?

• A) Horizontal mergers enable companies to achieve economies of scale.
• B) Horizontal mergers result in the fragmentation of the industry.
• C) The horizontal merger strategy has been very successful in businesses with zero cases of failure.
• D) Companies that establish a network of distributor outlets to obtain the advantages of a low-cost postition are known as horizontal mergers.
• E) Companies that adopt the strategy of centralization to gain control over all business units are known as horizontal mergers.

---

Definitions:

Readiness

The state of being fully prepared or in a suitable condition to undertake a specific task or to deal with certain situations.

Directed

Refers to guidance or leadership that steers actions or decisions towards specific goals or outcomes.

Behavioral Intentions

Indications of an individual's readiness to perform a particular behavior, based on attitudes, beliefs, and perceived controls over that behavior.

Emotions

Three-dimensional emotional states characterized by a person's subjective feeling, their body's physical response, and the way this emotion is manifested through behavior or expression.