GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
horizontal merger
|
|
|
net income
|
|
|
depreciation
|
|
|
multinational
|
|
|
vertical merger
|
Detailed explanation-1: -A horizontal merger occurs when companies operating in the same or similar industry combine together. The purpose of a horizontal merger is to more efficiently utilize economies of scale, increase market power, and exploit cost-based and revenue-based synergies.
Detailed explanation-2: -Horizontal. A horizontal merger occurs between companies operating in the same industry. The merger is typically part of consolidation between two or more competitors offering the same products or services.
Detailed explanation-3: -When two entities competing in the same industry combine, it is called a horizontal business combination. 2. Horizontal business combinations are likely to occur when management is attempting to dominate a geographic segment of the market.