Which of the following takeovers are most likely to be motivated by management inefficiency?
A)Horizontal takeover.
B)Vertical takeover.
C)Conglomerate takeover.
D)All of the given options.

Question

Quizplus · Accepted Answer

Horizontal takeovers involve the acquisition of a company that operates in the same industry as the acquiring firm. This type of takeover is most likely to be motivated by management inefficiency as the acquiring company aims to eliminate competition, reduce costs, and improve efficiency by integrating operations. In contrast, vertical takeovers involve the acquisition of a company that operates in a different stage of the supply chain, and conglomerate takeovers involve the acquisition of a company in an unrelated industry, both of which may be motivated by other strategic considerations beyond management inefficiency.

Which of the Following Takeovers Are Most Likely to Be