Under a _____, the assets of two firms that operate in the same market are put under a single ownership.
A)vertical merger
B)horizontal merger
C)vertical acquisition
D)horizontal acquisition

Question

Quizplus · Accepted Answer

A horizontal merger involves the combination of two firms that operate in the same industry or market, usually in order to increase market share and efficiency. This option aligns with the scenario described in the question. A vertical merger involves the combination of firms in different stages of production or distribution, while an acquisition involves one company acquiring another. A vertical acquisition involves a firm acquiring a supplier or customer, while a horizontal acquisition involves the acquisition of a competitor.

Under a _____, the Assets of Two Firms That Operate