If two steel firms decide to merge, this merger would be classified as:
A) a horizontal merger.
B) a vertical merger.
C) a conglomerate merger.
D) either a vertical or conglomerate merger depending on the nationality of the companies.
E) either a vertical or conglomerate merger depending on the market shares of the two companies.

Question

Quizplus · Accepted Answer

A horizontal merger is when two firms in the same industry merge. In this case, the two steel firms are in the same industry and therefore, their merger would be classified as a horizontal merger.

If Two Steel Firms Decide to Merge, This Merger Would