Which of the Following Statements Is True About Horizontal Mergers

Multiple Choice

Which of the following statements is true about horizontal mergers?

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 postition 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.