Which One of the Following Is Not an Example of a Horizontal

question 102

Multiple Choice

Which one of the following is not an example of a horizontal merger?

• A) NationsBank and Bank of America combine
• B) U.S. Steel and Marathon Oil combine
• C) Exxon and Mobil Oil combine
• D) SBC Communications and Ameritech Communications combine
• E) Hewlett Packard and Compaq Computer combine

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Definitions:

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain range.

Break-even Sales

The amount of revenue needed to cover total costs, both fixed and variable, with no profit or loss.

Unit Selling Price

The cost for which customers can purchase an individual unit of a product.