Tee Time Golf Club just announced plans to purchase the property and assume the obligations of Chipper's Golf Resort, one of its major competitors. Tee Time Golf Club's plans are an example of a merger.

Question

Quizplus · Accepted Answer

Tee Time Golf Club's actions are an acquisition rather than a merger. An acquisition refers to one firm's purchase of the assets and obligations of another firm. Since the firms are competing in the same market rather than at different stages, this is a horizontal move.

Tee Time Golf Club Just Announced Plans to Purchase the Property