A horizontal merger is the acquisition of a firm:
A) With the same level of net income as the acquirer.
B) That provides a product or service as an input to the acquirer.
C) That competes in the same industry as the acquiring firm.
D) To which the acquirer is NOT related.
E) That spreads out the geographic area served by the acquirer.

Question

Quizplus · Accepted Answer

A horizontal merger involves the combination of two firms that compete in the same industry, thereby consolidating competitors.

A Horizontal Merger Is the Acquisition of a Firm