Which of the Following Is True of a Horizontal Merger

question 30

Multiple Choice

Which of the following is true of a horizontal merger?

• A) The key benefit of this merger stems from the merged firm's increased control over the acquisition of raw materials or the distribution of finished goods.
• B) The key benefit of this form of merger is its ability to reduce risk by merging firms that have different patterns of sales and earnings.
• C) This form of merger results when two firms in the same line of business are merged.
• D) This form of merger occurs when a firm acquires a supplier or a customer.

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Definitions:

Torquing

The process of applying a specific amount of twist or force to fasteners, such as bolts and nuts, to ensure they are properly secured.

Clamping Force

The force applied to hold two or more objects together, preventing movement or separation.

Yield Point

The stress at which a material begins to deform plastically, after which deformation will occur without any increase in load.

Internal Threads

Threads located on the inside surface of a hole or cylinder, designed to mate with external threads of a bolt or screw.