In Which Situation Would Horizontal Integration Be an Especially Effective

question 96

Multiple Choice

In which situation would horizontal integration be an especially effective strategy?

• A) When an organization can gain monopolistic characteristics in a particular area or region without being challenged by the federal government for "tending substantially" to reduce competition
• B) When an organization competes in a slowing industry
• C) When decreased economies of scale provide major competitive advantages
• D) When an organization has neither the capital nor human talent needed to successfully manage an expanded organization
• E) When competitors are succeeding due to managerial expertise or having particular resources an organization possesses

---

Definitions:

Long-Term Equities

Investment securities that represent ownership in a company or corporation and are held for a period longer than one year.

Maturity Matching

A financial strategy that entails matching the duration of assets and liabilities to minimize risk associated with cash flow mismatches.

Project Duration

The total time required to complete a project from start to finish.

Financing Term

Conditions and duration under which money is borrowed or lent, including interest rate, repayment schedule, and other loan covenants.