GENERAL KNOWLEDGE

GK

BUSINESS MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Acquire businesses that engage in similar activity for example if AT&T purchased Verizon.
A
Virtual Integration
B
Horizontal Integration
C
Forward Vertical Integration
D
Chain of Production
Explanation: 

Detailed explanation-1: -If a company acquires or merges with another company and both firms are in a very similar industry, it is most likely an example of horizontal integration. Specific examples include: JetBlue’s 2022 merger with Spirit Airlines5.

Detailed explanation-2: -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: -An example of a horizontal acquisition would be a candy company that purchasing another candy company with different products but a similar production schedule.

Detailed explanation-4: -Horizontal integration is when a company expands its business operations by acquiring or merging with other companies at the same production stage. This occurs when a company expands its product offerings or services by working with other companies to produce similar products or services.

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