A combination of two or more companies that compete directly with each other is known as a ____.
A) conglomerate merger
B) vertical merger
C) horizontal merger
D) takeover

Question

Quizplus · Accepted Answer

A horizontal merger is a combination of two or more companies that compete directly with each other in the same industry or market. A conglomerate merger combines companies from different industries or markets, while a vertical merger combines companies that operate in different stages of the same supply chain. A takeover is the acquisition of one company by another, but it does not necessarily involve companies that compete directly with each other. Therefore, the best choice is C for a combination of companies that compete directly with each other.

A Combination of Two or More Companies That Compete Directly