Which of the following statements is true about horizontal mergers?
A) Horizontal mergers enable companies to achieve economies of scale.
B) Horizontal mergers result in the fragmentation of the industry.
C) The horizontal merger strategy has been very successful in businesses with zero cases of failure.
D) Companies that establish a network of distributor outlets to obtain the advantages of a low-cost postition are known as horizontal mergers.
E) Companies that adopt the strategy of centralization to gain control over all business units are known as horizontal mergers.

Question

Quizplus · Accepted Answer

Horizontal mergers enable companies to achieve economies of scale by combining their resources and reducing duplication of effort. This can lead to cost savings and increased efficiency, ultimately resulting in higher profits.

Which of the Following Statements Is True About Horizontal Mergers