Trans Globe Airlines is in talks with Royal Blue Airlines,a financially troubled rival.The firms believe the merger will create a stronger company that can offer travelers more flights to a wider variety of destinations.This proposed merger is an example of a:
A)Conglomerate merger.
B)Leveraged buyout.
C)Horizontal merger.
D)Joint venture.

Question

Quizplus · Accepted Answer

This is a horizontal merger because Trans Globe Airlines is merging with a rival in the same industry to increase their market share and offer more flights and destinations to customers.

Trans Globe Airlines Is in Talks with Royal Blue Airlines,a