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:

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