If eBay were to acquire a smaller online auction company, this would be an example of a ________ merger.
A) conglomerate
B) vertical
C) market extension
D) horizontal

Question

Quizplus · Accepted Answer

Horizontal merger refers to the merger of two companies operating in the same industry or market. In the given scenario, eBay acquiring a smaller online auction company is an example of a horizontal merger because both companies are operating in the same market of online auctions.

If EBay Were to Acquire a Smaller Online Auction Company