BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
horizontal merger
|
|
|
net income
|
|
|
depreciation
|
|
|
multinational
|
|
|
vertical merger
|
Detailed explanation-1: -A merger between Coca-Cola and the Pepsi beverage division, for example, would be horizontal in nature. The goal of a horizontal merger is to create a new, larger organization with more market share.
Detailed explanation-2: -Facebook and Instagram. One of the most definitive examples of horizontal integration was the acquisition of Instagram by Facebook (now Meta) in 2012 for a reported $1 billion. 1 Both companies operated in the same industry (social media) and shared similar production stages in their photo-sharing services.
Detailed explanation-3: -Horizontal mergers occur when companies of the same industry merge. They often result in a way to eliminate competition by creating one powerful company instead of two competitors. Horizontal mergers can greatly increase revenues, as the combined companies have access to a greater variety of products or services.
Detailed explanation-4: -Vertical Mergers A vertical merger is a merger between companies that operate along the same supply chain. A vertical merger is the combination of companies along the production and distribution process of a business.