Multiple Choice
Most of the biggest mergers and acquisitions since 2000 have been horizontal-i.e.between companies in the same industry.This reflects the fact that:
A) Antitrust authorities have been more concerned with vertical than horizontal mergers and acquisitions
B) By showing that diversification does not offer significant risk-spreading benefits,modern financial theory has undermined the attractions of diversifying mergers and acquisitions
C) Horizontal mergers and acquisitions offer the greatest potential for value creation through cost reduction and moderating competition
D) CEOs favor horizontal mergers and acquisitions because of their desire to eliminate rivals.
Correct Answer:
Verified
Correct Answer:
Verified
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