Multiple Choice
Which of the following statements about horizontal mergers is true?
A) Horizontal mergers enable companies to achieve economies of scale.
B) Horizontal mergers result in the fragmentation of the industry.
C) The horizontal merger strategy has been very successful in businesses with zero cases of failure.
D) Companies that establish a network of distributor outlets to obtain the advantages of a low-cost position are known as horizontal mergers.
E) Companies that adopt the strategy of centralization to gain control over all business units are known as horizontal mergers.
Correct Answer:
Verified
Correct Answer:
Verified
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