Suppose Ford acquires General Motors. This is an example of a ___________ acquisition.
A) Conglomerate.
B) Vertical.
C) Horizontal.
D) Tender offer.
E) Pooling of interests.

Question

Quizplus · Accepted Answer

A horizontal acquisition occurs when a company acquires another company that operates in the same industry at the same stage of production. Ford acquiring General Motors, both being major players in the automotive industry, is an example of a horizontal acquisition, as it involves two companies in the same industry consolidating.

Suppose Ford Acquires General Motors