Horizontal growth takes place when a ﬁrm _____.
A) streamlines procedures in the organization
B) invests in new capital assets
C) merges with other existing operators
D) downsizes the business which makes it easier to control and coordinate

Question

Quizplus · Accepted Answer

Horizontal growth occurs when a firm expands its operations into the same level of the value chain by merging with or acquiring other businesses that are in the same industry. This can increase the company's market share and reduce competition.

Horizontal Growth Takes Place When a ﬁRm _____