A Consolidated Industry Structure

question 32

Multiple Choice

A consolidated industry structure:

• A)consists of a large number of small companies.
• B)can be seen in agriculture, dry cleaning, health clubs, and real estate brokerage.
• C)consists of few companies that are in a position to determine industry price.
• D)provides no scope for oligopoly to exist.
• E)is characterized by low-entry barriers and commodity-type products.

---

Definitions:

Congeneric Merger

A type of acquisition where two companies operate in the same industry but do not offer the same products or services.

Combining Companies

The process of merging or acquiring companies to enhance competitive advantage, expand market share or diversify offerings.

Related Businesses

Entities or companies that are connected by activities, products, services, or market sectors.

Oligopoly

A market structure characterized by a few firms dominating the market, which can lead to limited competition and potentially higher prices for consumers.