Horizontal integration occurs when a single media company

Question

Quizplus · Accepted Answer

Horizontal integration refers to a media company acquiring other media businesses that are of the same nature. This strategy allows the company to expand its market share and gain more control over its industry. Option A is incorrect because a merger with the only other company in the same business would be a form of vertical integration. Option C is incorrect because owning all the media businesses in a specific market area would be a form of local monopoly. Option D is incorrect because selling the majority of shares to other media businesses would mean the opposite of integration. Option E is partially correct but not specific enough, as horizontal integration does not necessarily require owning businesses throughout the entire production and distribution chain.

Horizontal Integration Occurs When a Single Media Company