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.

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