When Compaq and Hewlett-Packard decided to become one company, this was an example of a(n)
A) acquisition.
B) hostile takeover.
C) horizontal merger.
D) conglomerate merger.
E) joint venture.

Question

Quizplus · Accepted Answer

When Compaq and Hewlett-Packard merged, it was an example of a horizontal merger because both companies operated in the same industry (computing and information technology), and the merger combined two competitors to create a larger entity in the same market.

When Compaq and Hewlett-Packard Decided to Become One Company, This