When one automaker acquires another automaker the acquisition is classified as a:
A) Leveraged buyout.
B) Vertical acquisition.
C) Strategic alliance.
D) Conglomerate acquisition.
E) Horizontal acquisition.

Question

Quizplus · Accepted Answer

When one automaker acquires another automaker, it is considered a horizontal acquisition because both companies operate in the same industry and are at the same level in the supply chain. This type of acquisition is aimed at consolidating market position, reducing competition, or achieving economies of scale.

When One Automaker Acquires Another Automaker the Acquisition Is Classified