Recently there have been several mergers involving Big Four accounting firms. One such merger involved the firms of Arthur Young and Ernst & Whinney, who combined to form Ernst & Young. This is an example of a
A) joint venture.
B) horizontal merger.
C) vertical merger.
D) syndicate.
E) conglomerate merger.

Question

Quizplus · Accepted Answer

The merger between Arthur Young and Ernst & Whinney is a horizontal merger because they are two firms operating in the same industry and merged to create a larger entity.

Recently There Have Been Several Mergers Involving Big Four Accounting