Which of the following statements is TRUE?
A) A horizontal merger involves a combination of businesses that have little or no relationship to each other, such as a meat-packing business and a lumber mill.
B) A vertical merger involves a combination of complementary businesses at different stages of production or distribution, such as a supplier and a customer.
C) A diagonal merger involves combination of businesses that operate at the same stage of production or distribution, but aim for different segments of the market, such as Earl's and McDonald's.
D) A vertical merger involves a combination of businesses at the same stage of production or distribution, such as competitors.
E) A horizontal merger involves combination of complementary businesses at different stages of production or distribution, such as a supplier and a customer.
Correct Answer:
Verified
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