ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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net income
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vertical merger
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cash flow
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horizontal merger
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income statement
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Detailed explanation-1: -A horizontal merger is a merger or business consolidation that occurs between firms that operate in the same industry. Competition tends to be higher among companies operating in the same space, meaning synergies and potential gains in market share are much greater for merging firms.
Detailed explanation-2: -A horizontal merger is when competing companies merge-companies that sell the same products or services. The T-Mobile and Sprint merger is an example of a horizontal merger. Meanwhile, a vertical merger is a merger of companies with different products, such as the AT&T and Time Warner combination.
Detailed explanation-3: -Horizontal Versus Vertical Mergers These competitors operate within a similar industry or have like products. A completed horizontal merger leaves the market with one less competitor and a larger combined firm. A vertical merger is a combination of firms at different levels of the supply chain.