If two firms in one industry join to hold a greater share of the industry, it will be referred to as
A) a consolidation.
B) a takeover.
C) an acquisition.
D) a conglomerate.
E) assimilation.

Question

Quizplus · Accepted Answer

A consolidation occurs when two firms in the same industry merge to create a larger company with a greater market share. This is different from a takeover or acquisition, which typically involve one firm purchasing or controlling another. A conglomerate involves companies from different industries coming together, while assimilation is not a commonly used term in this context.

If Two Firms in One Industry Join to Hold a Greater