Mobi Telecom Inc.and Broadcom Inc.are manufactures of cell phones competing in the same markets.If Broadcom decides to acquire and merge with Mobi,the merger is most likely to be called a ______.
A) vertical merger
B) horizontal merger
C) product extension merger
D) geographic extension merger
E) freeze-out merger

Question

Quizplus · Accepted Answer

If Broadcom Inc. decides to acquire and merge with Mobi Inc., the merger is most likely to be called a horizontal merger. A horizontal merger usually combines two businesses in the same field or industry. As Broadcom and Mobi are competitors in the same field, the merger is called a market extension merger.