Assume that three automobile manufacturers all merged into one car company.Such a merger would be a
A)vertical merger.
B)vertical cooperative arrangement merger.
C)horizontal merger.
D)intracompetitive merger.

Question

Quizplus · Accepted Answer

A horizontal merger involves the combination of two or more companies that operate in the same industry and produce similar products or services. In this case, the merger of three automobile manufacturers would be a horizontal merger since they are all in the same industry and produce cars. A vertical merger involves the combination of two or more companies that operate at different stages of the supply chain, while a vertical cooperative arrangement merger involves a cooperative arrangement rather than a merger. An intracompetitive merger is not a commonly used term.

Assume That Three Automobile Manufacturers All Merged into One Car